ACCOUNTING FOR MANAGERS ASSIGNMENT-I PREPARATION OF FINANCIAL STATEMENTS (FINAL ACCOUNTS) Submission date: 28.09.2011 (Wednesday) 1.

From the following trial balance of a trader, make out a trading and profit and loss account and Balance sheet as on 31st March 2000. Particulars Sales Purchases Printing charges Wages Salaries Opening stock Carriage Inwards General Expenses Trade Marks Rates and Taxes Capital Discount received Loan Buildings Furniture Machinery Cash Bank Total Debit (Rs.) 1,05,000 2,500 77,500 12,500 2,25,000 8,800 26,250 5,000 2,500 1,74,800 1,250 1,75,000 2,00,000 25,000 50,000 1,000 30,000 7,71,050 Credit(Rs.) 4,20,000

7,71,050

Adjustments: 1. The closing stock was valued at Rs.3,20,000. 2. Outstanding Salaries Rs.10,000. 3. Prepaid rates & taxes Rs.500. (Ans: G.P =Rs.3,23,700, N.P= 2,71,700, B/S=631,500) 2. From the following trial balance of Mr.Bhaskar, make out a trading and profit and loss account and Balance sheet as on 31st March 2003. Particulars Machinery Cash at Bank Cash in Hand Wages Purchases Stock (01.04.2002) Sundry Debtors Bills Receivables Rent Interest on Bank Loan Commission received General Expenses Debit(Rs.) 40,000 10,000 5,000 10,000 80,000 60,000 40,000 29,000 4,000 500 12,000 Credit(Rs.)

3,000

Salaries Discount received Capital Sales Bank Loan Sundry Creditors Purchase returns Sales returns Adjustments: 1. 2. 3.

7,500 4,000 90,000 1,20,000 40,000 40,000 5,000 4,000 3,02,000 3,02,000

Closing stock Rs.80,000 . Interest on Bank loan not yet paid Rs.400. Commission received in advance Rs.1000.

(Ans: G.P =51,000, N.P =32,600 , B/S =2,04,000)

3. The following are the balances extracted from the books of Mrs.Suguna as on 31st March,2004. Debit balances Drawings Cash at Bank Cash in Hand Wages Purchases Stock (31.03.03) Buildings Sundry debtors Bills Receivables Rent Commission General expenses Furniture Suspense account Total Adjustments: 1. 2. 3. 4. 5. 6. Rs. 40,000 17,000 60,000 10,000 20,000 60,000 1,00,000 44,000 29,000 4,500 2,500 8,000 5,000 5,000 4,05,000 Credit Balances Capital Sales Sundry Creditors Rs. 2,00,000 1,60,000 45,000

4,05,000

Closing stock Rs.40,000 valued as on 31.03.04. Interest on capital at 6% to be provided. Interest on Drawings at 5% to be provided. Depreciate buildings at the rate of 10% per annum. Write off Bad debts Rs.1000. Wages yet to be paid Rs.500.

Prepare Trading and profit & loss account and balance sheet as on 31st march 2004.

(Ans: G.P =1,09,500, N.P = 73,500, B/S= 2,89,000)

4. Mr.Senthils book shows the following balances. Prepare his Trading and Profit and loss account for the year ended 31st March 2005 and Balance Sheet as on that date. Particulars Stock on 1.4.2004 Purchases Sales Carriage inwards Salaries Printing and Stationery Drawings Sundry Creditors Sundry Debtors Furniture Capital Postage & Telephone Interest paid Machinery Loan account Suspense A/C Total Adjustments: 1. 2. 3. 4. 5. Debit (Rs.) 1,50,000 1,30,000 2,000 50,000 8,000 17,000 20,000 1,80,000 10,000 2,50,000 7,500 4,000 41,500 25,000 5,000 6,00,000 Credit(Rs.)

3,00,000

6,00,000

Closing stock Rs.1,20,000 Provide 5% for bad & doubtful debts on debtors. Depreciate machinery& furniture by 5% Allow interest on capital at 5% Prepaid printing charges Rs.2,000.

(Ans: G.P = 1,38,000, N.P= 46425, B/S=3,41,925)

5. From the trial balance of Mr.Raghuraman as on 31st March, 2003 prepare Final accounts. Particulars Debit (Rs.) Credit (Rs.)

Capital Drawings Stock (1.4.2002) Purchases Sales Sales returns Wages Insurance Premium Packing Expenses Postage Advertisement Carriage outwards Bad debts Commission received Bills Payable Bank Overdraft Land & Buildings Plant & Machinery Sundry Debtors Sundry Creditors Total Adjustments: 1. 2. 3.

3,60,000 6,400 18,000 1,29,000 2,38,000 4,000 32,000 3,000 4,000 200 2,000 16,000 600 1,000 18,000 6,000 2,61,000 1,80,000 50,800 7,07,000 84,000 7,07,000

Closing stock as on 31.03.2003 Rs.15000. Write off bad debts Rs.800 and make provision for bad & doubtful debts @ 5% on Sundry Debtors. Commission accrued but not received Rs.2,000. (Ans: G.P = 66,000, N.P =43,900, B/S=5,05,500)

6. From the following trial balance of Mrs.Sulochana, make out a trading and profit and loss account and Balance sheet as on 31st March 2004. Particulars Capital Cash Buildings Salary Rent & taxes Opening stock Machinery Drawings Purchases Sales Carriage inwards Fuel , gas Sundry Debtors Sundry creditors Bills Receivables Dividend Loan Bad debts Advertisement Debit (Rs.) 40,000 4,00,000 1,10,000 21,000 1,20,000 1,20,000 40,000 5,00,000 7,50,000 5,000 37,000 2,50,000 1,20,000 53,000 28,000 60,000 2,000 16,000 Credit (Rs.) 7,50,000

Provision for Bad & Doubtful debts Total

6000 17,14,000 17,14,000

Adjustments: 1. Closing stock Rs.1,40,000. 2. Write off Rs.10,000 as bad debts; Provide 5% for Bad and Doubtful debts. 3. Make provision for discount on Debtors @ 2%. 4. Provision for discount on creditors @ 2%. (Ans: G.P =2,28,000, N.P =88,840, B/S =9,76,440) 7. From the trial balance of Mr.Imran as on 31st March, 2005 prepare Final accounts. Particulars Capital Bank Overdraft Sales Furniture Business Premises Creditors Opening stock Debtors Rent Purchases Discount Insurance Wages Salaries Advertisement Carriage on purchases Provision for bad and doubtful debts Bad debts Income tax Total Adjustments: 1. Closing stock on 31.03.2005 was Rs.1,20,000. 2. Make a provision of 5% on debtors for Bad and Doubtful debts. 3. Rent received in advance Rs.2,000. 4. Provide 10% depreciation on Furniture and Business premises. (Ans:G.P = 1,96,200, N.P = 1,05,140, B/S= 3,58,140) Debit (Rs.) Credit(Rs.) 1,50,000 25,200 9,03,000

30,600 1,20,000 79,800 1,32,000 1,08,000 6,000 6,60,000 2,400 16,000 24,000 54,000 13,200 10,800 7,000 800 4,000 11,73,4000

11,73,4000

8. From the following trial balance make out a trading and profit and loss account and Balance sheet as on 31st March 1981. Debit Balances Rs. Credit Balances Rs.

Purchases Debtors Return inwards Bank deposit Rent Salaries Travelling expenses Cash Stock (1.4.1980) Discount allowed Drawings Adjustments: 1. 2. 3. 4.

11,870 7,580 450 2,750 360 850 300 210 2450 40 600 27,460

Capital Bad debts recovered Creditors Return outwards Bank Overdraft Sales Bills Payable

8,000 250 1,250 350 1,570 14,690 1,350

27,460

The closing stock on 31.3.81 was Rs.4,200. Write off Rs.80 as bad debts. Create a provision for bad and doubtful debts @ 5% on debtors. Rent outstanding Rs.120. (Ans: G.P =9,700, N.P = 5890, B/S=42,190)

9. From the trial balance of Mr.Ravi as on 31 st March, 2002 prepare Final accounts. Particulars Capital Sales Purchases Salaries Rent Insurance Drawings Machinery Bank Balance Cash Stock (1.4.2001) Debtors Creditors Adjustments: Debit (Rs.) Credit (Rs.) 40,000 25,000

15,000 2,000 1,500 300 5,000 28,000 4,500 2,000 5,200 2,500 1,000

1. 2. 3. 4.

Stock on 31.3.02 Rs.4,900. Salaries unpaid Rs.300 Rent paid in advance Rs.200. Insurance prepaid Rs.90.

(Ans: G.P = 4470, N.P = 2595, B/S = 14,285)

10. The following are the balances extracted from the books of Mrs.Nandhini as on 31.03.2002. prepare Trading and Profit and Loss Account and balance sheet as on 31.3.2002. Debit Balances Drawings Cash in Hand Cash at Bank Wages Purchases Stock (1.4.2001) Buildings Sundry debtors Bills Receivables Rent Commission General Expenses Furniture Rs. 40,000 17,000 65,000 10,000 20,000 60,000 1,00,000 44,000 29,000 4,500 2,500 8,000 5,000 4,05,000 Credit balances Capital Sales Sundry Creditors Rs. 2,00,000 1,60,000 45,000

4,05,000

Adjustments: 1. 2. 3. 4. 5. Closing stock Rs.40,000. Interest on Capital @ 6% to be provided. Interest on Drawings @ 5% to be provided. Wages yet to be paid Rs.1000. Rent prepaid Rs.900.

(Ans: G.P = 1,09,000, N.P = 84,900, B/S = 3,00,900)

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