St.

Marys School of Management Studies Jeppiaar Educational Trust, Chennai 119 Subject: Management Accounting Problems in Final Accounts Problem 1: Prepare the Trial Balance as on 31-12-2002 from the following balances of Thiru. Chinnadurai. Rs. 40000 13000 4000 7200 5800 7000 16000 144000 1200 600 20000 900 800 Rs. 94000 3400 2400 1400 3500 29900 10000 3000 5000 1600 1700 1000 400

Capital Creditors Drawings Salaries Bills receivable Bills payable Debtors Sales Insurance Misc.expenses Land Discount paid Commission received

Purchases Sales returns Purchase returns Carriage inwards Printing & stationery Stock Machinery Household goods Wages Rent Interest received Traveling expenses Electricity charges

Problem 2: The following balances are extracted from the books of Thiru. Subbiah. Prepare the Trial Balance as on 30-06-2002.

Capital Cash in hand Building Stock Sundry creditors Commission paid Rent & taxes Purchases Furniture Loan to M Discount allowed Drawings Bills receivable Office expenses Purchases returns Computer

Rs. 20000 5000 20000 3000 6000 700 300 60000 1000 1000 50 5000 860 350 750 7740

Machinery Debtors Repairs Wages Insurance Sales Sales returns Carriage Telephone Salaries Discount earned Bank o/d Reserves Car Bills payable

Rs. 6000 8000 400 1700 300 90000 400 200 250 600 100 4300 900 5200 6000

M. Daniel Rajkumar

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Problem 3: From the following balances prepare the Trial Balance of Mr.X Rs. Drawings Opening stock Capital Furniture Creditors Printing charges Coal Bank loan Freight Income tax Machinery 4800 30000 50000 13000 15000 1200 1600 20000 3500 9500 65000 Purchases Discount received Discount allowed Repairs Sales Rent Sundry expenses Bills receivable Carriage outwards Bills payable Rs 175000 1000 950 1000 235350 2500 1000 12500 1500 1700

Problem 4: Prepare Trial Balance from the following balances of Thiru.Saravanan. Capital Building Machinery Furniture Motor car Opening stock Purchases Purchase returns Sales Sales returns Sundry debtors Tools Rs. 20000 15000 10000 1000 8000 16000 74000 1000 140000 500 15000 300 Cash in hand Cash at bank Salaries Rent Commission Rates & taxes General expenses Insurance Discount earned Discount allowed Office expenses Creditors Rs. 300 4700 14000 4000 1400 600 200 400 500 700 800 5400

M. Daniel Rajkumar

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Problem 5: Prepare the Trial Balance as on 31-12-2002 from the following ledger account balances of Thiru.Pattabi. Drawings Tax Capital Sales Creditors Salaries Bills payable Sales returns Sundry debtors Purchase returns Bills receivable Traveling expenses Loan from X Commission paid Fittings Trading expenses Opening stock Discount (cr) Cash in hand Rent Cash at bank Bank o/d Purchases Vehicle Problem 6: Prepare Trading and Profit and Loss account for the year ending 31-12-2001 from the books of Mr.Raman. Rs. Opening stock Purchases Purchase returns Postage Discount (Dr.) Bad debts Sales 15,000 1,65,000 10,000 300 500 100 3,00,000 Carriage inwards Wages Sales returns Salaries Stationeries Interest Insurance Rs. 4,000 10,000 5,000 5,000 1,000 800 400 Rs. 3,000 12,000 21,500 2,000 25,000 2,600 5,000 2,250 23,500 450 6,250 28,000 Rs. 1,750 64,000 4,750 500 550 2,300 50 1,250 2,000 1,000 3,000 7,400

The closing stock was valued at Rs.80, 000. Problem 7: From the following Trial Balance of Mr.SASI prepare Trading and Profit&Loss Account for the year ending 31-12-2001. Rs. Rs. Purchases 54,000 Sales 1,04,000 Salaries 35,000 Return outwards 1,200 Office expenses 400 Discount received 600 Trading expenses 800 Interest received 300 Lighting 1,100 Capital 17,800 Carriage inwards 800 Returns inwards 1,200 Discount allowed 400 Commission allowed 200 Stock 6,000 Income tax 4,000 Cash in hand 20,000 ---------------------1,23,900 1,23,900 M. Daniel Rajkumar Page 3 of 13

Problem 8: From the following Trial Balance extracted from the books of Thiru.Anbu as on 31-03-2001 prepare (1) Trading, Profit & Loss account and (2) Balance sheet. Debit Rs. Credit Rs. Cash in hand 2000 Capital 2,00,000 Machinery 60,000 Sales 2,54,800 Stock 50,000 Creditors 40,000 Bills receivable 1600 Bank o/d 22,000 Sundry debtors 50,000 Return inwards 3000 Wages 70,000 Discount received 1800 Land 40,000 Bills payable 1800 Carriage outwards 2400 Purchases 1,80,000 Salaries 24,000 Rent 4000 Postage 1000 Return outwards 3200 Drawings 10,000 Furniture 18,000 Interest 600 Cash at bank 6,600 -----------------------5,23,400 5,23,400 -----------------------The closing stock was valued at Rs.1, 00,000 Problem 9: From the following Balances of Mr.R, prepare Trading account for the year ending 31st March 2001. Opening stock Purchases Carriage inwards Sales returns Purchase returns Sales Wages Stock (on 31-03-2001) Rs. 12,000 28,000 200 1200 1200 40,000 1500 14,000

M. Daniel Rajkumar

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Problem 10: The following are the balances extracted from the books of Mr.Guru, prepare profit & loss account for the year ending 31-03-2002. Rs. Rs. Gross profit 25,000 Traveling expenses 500 Salaries 5,600 Stationeries 75 Insurance 200 Printing charges 375 Discount allowed 400 Rent 650 Discount received 300 Interest loan 225 Commission earned 100 Repairs 125 Advertisement 450 Office lighting 55 Taxes 150 General expenses 875 Postage expenses 175 Problem 11: From the following balances of Mr.Bharath, prepare Trading, Profit and Loss account and balance sheet for the year ending 31-03-2001. Stock Repairs Machinery Furniture Office expenses Trading expenses Land Bank charges Miscellaneous income Purchases Purchase returns Rs. 9,300 310 12,670 1,330 750 310 15,400 50 200 15,450 440 Sales returns Creditors Advertisement Cash in hand Cash at bank Sales Sundry expenses Insurance Traveling expenses Capital Loan Rs. 120 12,370 500 160 5,870 20,560 150 500 200 24,500 5,000

Closing stock was valued at Rs.7,585. Problem 12: The following Trial Balance has been extracted from the books of Mr.Varun on 31-122001. Rs. Rs. Machinery 4,000 Capital 9,000 Cash at bank 1,000 Sales 12,000 Cash in hand 500 Bank loan 4,000 Wages 1,000 Creditors 4,500 Purchases 8,000 Dividend received 300 Stock on 1-01-2001 6,000 Debtors 4,400 Bills receivable 2,900 Rent 400 Interest on bank loan 50 Commission 250 General expenses 800 Salaries 500 ------------------29800 29800 ------------------Adjustments: M. Daniel Rajkumar Page 5 of 13

1. Closing stock Rs.8, 000 as on 31-12-2001 2. Wages o/s Rs.100 3. Salaries unpaid Rs.100 4. Rent prepaid Rs.150 5. Commission due Rs.50 6. Interest on bank loan not yet paid Rs.400 Problem 13: The following Trial Balance was extracted from the books of Mr.X on 31-12-2001. Particulars Capital Drawings General expenses Buildings Stock on April Coal Wages Taxes & insurance Debtors Creditors Discount Loan @ 6% Moped vehicle Rent Apprentice premium Commission received Electricity charges Bills payable Cash Bank Overdraft Indian Bank Shares Sales Purchases Interest on loan Debit Rs. 4,000 5,680 32,000 32,400 4,480 14,400 2,630 12,560 5,760 1,100 15,000 7,500 500 1,800 2,640 2,810 7700 160 6,600 5,000 1,30,720 93,550 450 2,19,220 2,19,220 Credit Rs. 49,000

Prepare Trading and Profit and loss account for the year ended and balance sheet after giving effect to the following adjustments: 1. Closing Stock Rs. 47,000. 2. Six months interest due on loan. 3. Insurance premium prepaid Rs. 230. 4. Premium accrued but not yet received Rs.200 5. Commission received in advance Rs. 340.

M. Daniel Rajkumar

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Problem 14: From the following particulars of Mr.X prepare their Final Accounts. PARTICULARS Capital Drawings Land Cash Debtors Sales Opening stock Wages Carriage inwards Bills receivable Creditors Machinery Furniture Salaries Sales returns Carriage outwards Rents and taxes Insurance premium Stationery Traveling expenses Loan from Kumar Purchases Premises Discount allowed Advertisement Postage Purchase returns Rs. Rs. 1,30,000 1,000 89,600 1,320 15,380 1,06,040 4,790 27,480 12,310 4,300 42,850 76,500 3,700 23,740 1,340 400 3,670 1,000 130 7,000 45,000 36,590 12,000 650 570 680 1,430 3,25,320 Adjustments: 1. Depreciation to be provided on the following Assets: Machinery @ 10% Furniture @20% Land @ 5% Premises @2% 2. Taxes unpaid Rs.250 3. Wages overpaid Rs.4350 4. Closing Stock Rs. 7,530. 3,25,320

M. Daniel Rajkumar

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Problem 15: The following are the balances extracted from the books of Elumalai as on 31/3/2003 Particulars Capital Drawings Cash in bank Sales Cash in hand Wages Purchases Stock on 1/4/2000 Creditors Buildings Debtors Bills receivable Rent Commission General exp. Furniture Dr. Cr. 20,000 4,000 1,700 16,000 6,500 1,000 2,000 6,000 4,500 10,000 4,400 2,900 450 250 800 500 40 , 500 40 , 500

Adjustments: 1. closing stock was valued at Rs. 4000 2. Interest on capital at 6% to be provided. 3. Interest on drawings at 5% to be provided. 4. Wages yet to be paid at Rs.100. 5. Rent prepaid Rs. 50. Prepare Trading and Profit and Loss account and Balance sheet as on 31/3/2003.

M. Daniel Rajkumar

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Problem 16: Mr. Ds books show the following balances . Prepare the Final Accounts of his firm. Particulars Opening stock Purchases Sales Carriage inwards Salaries Printing and stationery Drawings Creditors Debtors Furniture Capital Postage Interest paid Machinery Loan account Debit (Rs.) 15,000 13,000 200 5,000 800 1,700 2,000 18,000 1,000 25,000 750 550 4,000 60,000 3,000 60,000 Credit (Rs.) 30,000

Adjustments: 1. Depreciate machinery by 10% and furniture by 5%. 2. Allow interest on capital at 5%. 3. Provide 5% for bad and doubtful debts on debtors 4. Closing stock Rs. 41,000. Problem 17: Prepare Final Accounts from the Trial Balance of Siva Agencies as on 31/3/2003 Particulars Debit Credit Capital Drawings Buildings Furniture Computer Loan from Hari @ 6% Interest on loan Sales Tools Purchases Opening stock General expenses Freight outward Freight inward Commission received Debtors Bank Creditors 1,00,000 1,800 15,000 7,500 25,000 15,000 900 1,00,000 16,100 75,000 25,000 15,000 2,000 1,000 7,500 28,000 20,200 10,000 2,32,500 Adjustments: M. Daniel Rajkumar Page 9 of 13 2,32,500

1. Closing Stock Rs. 32,000 2. Depreciate computer @ 10% ; buildings @ 5% and furniture @ 10%. 3. Provide 5% for bad debts and 2% for discount on debtors. 4. Provide interest on drawings @ 6% and capital at 8%. Problem 18: Below given is the Trial Balance of S ltd., DEBIT Rs. CREDIT Rs. Premises Plant Wages Opening stock Debtors Carriage inwards Carriage outwards Factory expenses Oil,gas and services Purchases Factory rent Discount allowed Office rent Insurance Office expenses Drawings Salaries Income tax Cash in bank Tools 1,50,000 45,000 20,000 78,000 50,000 1,500 900 7,500 1,500 75,000 6,500 2,900 4,000 2,000 6,000 3,000 12,000 1,900 6,000 300 4,74,000 Capital Creditors Sales Discount recd Dividend income Commission earned Misc, income Loan Provision for reserves 1,80,000 25,000 2,25,000 2,500 1,500 7,100 2,700 30,000 200

4,74,000

Adjustments: 1. Closing Stock valued at Rs. 1,00,000. 2. Depreciate Plant at 10 % and Premises at 10%. 3. Provide for bad and doubtful debts at 5% and 2% for discount on debtors. 4. Provide Interest on drawings at 5% and Interest on capital at 10% . Prepare Final Accounts.

M. Daniel Rajkumar

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Problem 19: From the following balances prepare the Trading and Profit Loss Account. Capital Cash Wages Rent Opening stock Insurance Machinery Purchases 75,000 44,000 11,000 1,500 12,000 4,600 12,000 50,000 Sales Carriage Debtors Creditors Sales returns Purchase returns Bills receivable Dividend 75,000 2,400 25,000 11,600 1,800 1,500 5,600 6,800

ADJUSTMENTS: 1. Closing Stock valued at Rs. 14,000. 2. Write off Rs. 1,000 as bad debts; provide 5% for bad and doubtful debts. Make provision for discount on debtors at 2%. 3. Provision for discount on creditors at 2%. 4. Wages prepaid Rs. 1000/5. Insurance outstanding Rs.400. Problem 20: The Trial Balance of Shri. M & Co. as on 31st March 2001 was as under: Particulars Capital Drawings Opening stock Purchases Sales Sales returns Wages Insurance Duty paid on purchases Packing expenses Carriage outwards Postage Advertisement Bad debts Discount received Bills payable Bank overdraft Land Plant Furniture Debtors Creditors Cash Good will Rs. 3,200 9,000 64,500 1,19,000 2,000 16,000 1,500 10,000 2,000 8,000 100 1,000 300 500 9,000 3,000 90,000 70,000 1,000 25,400 42,000 40,500 9,000 3,53,500 3,53,500 Rs. 1,80,000

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Adjustments: 1. Closing Stock was valued at Rs. 21,600. 2. Interst on bank overdraft was unpaid for Rs. 275. 3. Half yearly insurance was prepaid. 4. Depreciate land @ 10 % and plant at 20%. 5. Write off further bad debts Rs. 400 and make provisions for bad and doubtful debts @ 5% on debtors. 6. Wages outstanding Rs. 500. 7. Interest on capital charged at 10%. 8. Provide 10% as discount on creditors. 9. Advet. Bill of Rs. 700 was still pending. 10. Depreciate Furniture at 10%. Problem 21: From the following Trail Balance prepare the Final Accounts. TRIAL BALANCE DEBIT Rs. CREDIT Cash in hand Purchases Opening stock Debtors Air conditioners Computers Generators Discount allowed Bad debts Wages and salaries Trade expenses Manufacturing expenses Income tax Advert. Insurance. 1,100 1,00,000 20,000 40,000 15,000 20,000 15,000 400 700 24,000 10,000 15,000 8,200 14,000 2 ,100 2,85,000 2,85,000 Capital Bank loan Bills payable. Provision for bad debts Creditors Discount earned

Rs. 75,000 10,500 9,000 1,200 22,000 1,67,000 800

Additional information: 1. Closing stock valued at Rs. 40,000 2. Depreciate air conditioner @15% , generator @ 15%, computer @ 5%. 3. Write off bad debts Rs. 1000 and maintain the provision for bad debts @ 5%.

M. Daniel Rajkumar

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Problem 22: From the following balances prepare the Final accounts. DEBIT Rs. CREDIT Capital Cash Buildings Wages Salaries Rent Printing Opening stock Insurance Machinery Drawings Purchases 75,000 4,000 40,000 6,000 5,000 800 700 12,000 600 12,000 4,000 50,000 Sales Carriage inwards Fuel Debtors Creditors Sales returns Purchases returns Bill receivable Advertisement Dividend Furniture Loan

Rs. 75,000 500 1,900 25,000 11,600 1,800 1,500 2,000 1,600 800 2,000 6,000

Additional information: 1. Closing stock valued at Rs. 14000.

2. Provision for creditors at 2%. 3. Write off Rs. 1000 as bad debts and provide 5% for bad debts. Make provision for discount on debtors at 2%.

M. Daniel Rajkumar

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