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Accounts from Incomplete Records
Q-1 The books of account of Mr. Maan of Mumbai showed the following figures:
31.3.2018 ` 31.3.2019 `
Furniture & fixtures 2,60,000 2,34,000
Stock 2,45,000 3,20,000
Debtors 1,25,000 ?
Cash in hand & bank 1,10,000 ?
Creditors 1,35,000 1,90,000
Bills payable 70,000 80,000
Outstanding salaries 19,000 20,000
An analysis of the cash book revealed the following:
`
Cash sales 16,20,000
Collection from debtors 10,58,000
Discount allowed to debtors 20,000
Cash purchases 6,15,000
Payment to creditors 9,73,000
Discount received from creditors 32,000
Payment for bills payable 4,30,000
Drawings for domestic expenses 1,20,000
Salaries paid 2,36,000
Rent paid 1,32,000
Sundry trade expenses 81,000
Depreciation is provided on furniture & fixtures @10% p.a. on diminishing balance method. Mr. Maan
maintains a steady gross profit rate of 25% on sales.
You are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and
Balance Sheet as on that date.
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Page 2


Accounts from Incomplete Records
Q-1 The books of account of Mr. Maan of Mumbai showed the following figures:
31.3.2018 ` 31.3.2019 `
Furniture & fixtures 2,60,000 2,34,000
Stock 2,45,000 3,20,000
Debtors 1,25,000 ?
Cash in hand & bank 1,10,000 ?
Creditors 1,35,000 1,90,000
Bills payable 70,000 80,000
Outstanding salaries 19,000 20,000
An analysis of the cash book revealed the following:
`
Cash sales 16,20,000
Collection from debtors 10,58,000
Discount allowed to debtors 20,000
Cash purchases 6,15,000
Payment to creditors 9,73,000
Discount received from creditors 32,000
Payment for bills payable 4,30,000
Drawings for domestic expenses 1,20,000
Salaries paid 2,36,000
Rent paid 1,32,000
Sundry trade expenses 81,000
Depreciation is provided on furniture & fixtures @10% p.a. on diminishing balance method. Mr. Maan
maintains a steady gross profit rate of 25% on sales.
You are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and
Balance Sheet as on that date.
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Ans. Trading & Profit and Loss Account In the books of Mr. Maan
for the year ended 31st March, 2019
Particulars Amount Particulars Amount
` `
To Opening stock 2,45,000 By Sales:
To Purchases: Cash 16,20,000
Cash 6,15,000 Credit (W.N.3) 11,00,000
Credit (W.N. 2) 15,00,000 By Closing stock 3,20,000
To Gross profit c/d 6,80,000 _______
30,40,000 30,40,000
To Salaries (W.N.5) 2,37,000 By Gross profit b/d 6,80,000
To Rent 1,32,000 By Discount received 32,000
To Sundry trade expenses 81,000
To Discount allowed 20,000
To Depreciation on furniture & fixtures 26,000
To Net profit 2,16,000 ______
7,12,000 7,12,000
Balance Sheet
as at 31st March, 2019
Liabilities Amount Amount
` `
Capital Fixed assets
Opening balance (W.N.7) 5,16,000 Furniture & fixtures 2,34,000
Add: Net profit 2,16,000 Current assets:
7,32,000 Stock 3,20,000
Less: Drawings 1,20,000 6,12,000 Debtors (W.N.4) 1,47,000
Current liabilities & provisions: Cash & bank (W.N.6) 2,01,000
Creditors 1,90,000
Bills payable 80,000
Outstanding salaries 20,000 _______
9,02,000 9,02,000
Working Notes:
1. Bills Payable Account
` `
To Cash/Bank 4,30,000 By Balance b/d 70,000
To Balance c/d 80,000 By Trade creditors (Bal. fig.) 4,40,000
5,10,000 5,10,000
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Page 3


Accounts from Incomplete Records
Q-1 The books of account of Mr. Maan of Mumbai showed the following figures:
31.3.2018 ` 31.3.2019 `
Furniture & fixtures 2,60,000 2,34,000
Stock 2,45,000 3,20,000
Debtors 1,25,000 ?
Cash in hand & bank 1,10,000 ?
Creditors 1,35,000 1,90,000
Bills payable 70,000 80,000
Outstanding salaries 19,000 20,000
An analysis of the cash book revealed the following:
`
Cash sales 16,20,000
Collection from debtors 10,58,000
Discount allowed to debtors 20,000
Cash purchases 6,15,000
Payment to creditors 9,73,000
Discount received from creditors 32,000
Payment for bills payable 4,30,000
Drawings for domestic expenses 1,20,000
Salaries paid 2,36,000
Rent paid 1,32,000
Sundry trade expenses 81,000
Depreciation is provided on furniture & fixtures @10% p.a. on diminishing balance method. Mr. Maan
maintains a steady gross profit rate of 25% on sales.
You are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and
Balance Sheet as on that date.
Join Us on Telegram http://t.me/canotes_ipcc
Ans. Trading & Profit and Loss Account In the books of Mr. Maan
for the year ended 31st March, 2019
Particulars Amount Particulars Amount
` `
To Opening stock 2,45,000 By Sales:
To Purchases: Cash 16,20,000
Cash 6,15,000 Credit (W.N.3) 11,00,000
Credit (W.N. 2) 15,00,000 By Closing stock 3,20,000
To Gross profit c/d 6,80,000 _______
30,40,000 30,40,000
To Salaries (W.N.5) 2,37,000 By Gross profit b/d 6,80,000
To Rent 1,32,000 By Discount received 32,000
To Sundry trade expenses 81,000
To Discount allowed 20,000
To Depreciation on furniture & fixtures 26,000
To Net profit 2,16,000 ______
7,12,000 7,12,000
Balance Sheet
as at 31st March, 2019
Liabilities Amount Amount
` `
Capital Fixed assets
Opening balance (W.N.7) 5,16,000 Furniture & fixtures 2,34,000
Add: Net profit 2,16,000 Current assets:
7,32,000 Stock 3,20,000
Less: Drawings 1,20,000 6,12,000 Debtors (W.N.4) 1,47,000
Current liabilities & provisions: Cash & bank (W.N.6) 2,01,000
Creditors 1,90,000
Bills payable 80,000
Outstanding salaries 20,000 _______
9,02,000 9,02,000
Working Notes:
1. Bills Payable Account
` `
To Cash/Bank 4,30,000 By Balance b/d 70,000
To Balance c/d 80,000 By Trade creditors (Bal. fig.) 4,40,000
5,10,000 5,10,000
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2. Creditors Account
` `
To Cash/Bank 9,73,000 By Balance b/d 1,35,000
To Bills payable A/c (W.N.1) 4,40,000 By Credit purchases (Bal. fig.) 15,00,000
To Discount received 32,000
To Balance c/d 1,90,000 _______
16,35,000 16,35,000
3. Calculation of credit sales
`
Opening stock 2,45,000
Add: Purchases
Cash purchases 6,15,000
Credit purchases 15,00,000 21,15,000
23,60,000
Less: Closing Stock 3,20,000
Cost of goods sold 20,40,000
Gross profit ratio on sales 25%
Gross profit ratio on sales
100
Total sales 20,40,000×
75
? ?
? ?
? ?
` 
27,20,000
Less: Cash sales 16,20,000
Credit sales 11,00,000
4. Debtors Account
` `
To Balance b/d 1,25,000 By Cash/Bank 10,58,000
To Credit sales (W.N.3) 11,00,000 By Discount allowed 20,000
________ By Balance c/d (Bal. fig.) 1,47,000
12,25,000 12,25,000
5. Salaries
`
Salaries paid during the year 2,36,000
Add: Outstanding salaries as on 31.3.2019 20,000
2,56,000
Less: Outstanding salaries as on 31.03.2018 19,000
2,37,000
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Page 4


Accounts from Incomplete Records
Q-1 The books of account of Mr. Maan of Mumbai showed the following figures:
31.3.2018 ` 31.3.2019 `
Furniture & fixtures 2,60,000 2,34,000
Stock 2,45,000 3,20,000
Debtors 1,25,000 ?
Cash in hand & bank 1,10,000 ?
Creditors 1,35,000 1,90,000
Bills payable 70,000 80,000
Outstanding salaries 19,000 20,000
An analysis of the cash book revealed the following:
`
Cash sales 16,20,000
Collection from debtors 10,58,000
Discount allowed to debtors 20,000
Cash purchases 6,15,000
Payment to creditors 9,73,000
Discount received from creditors 32,000
Payment for bills payable 4,30,000
Drawings for domestic expenses 1,20,000
Salaries paid 2,36,000
Rent paid 1,32,000
Sundry trade expenses 81,000
Depreciation is provided on furniture & fixtures @10% p.a. on diminishing balance method. Mr. Maan
maintains a steady gross profit rate of 25% on sales.
You are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and
Balance Sheet as on that date.
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Ans. Trading & Profit and Loss Account In the books of Mr. Maan
for the year ended 31st March, 2019
Particulars Amount Particulars Amount
` `
To Opening stock 2,45,000 By Sales:
To Purchases: Cash 16,20,000
Cash 6,15,000 Credit (W.N.3) 11,00,000
Credit (W.N. 2) 15,00,000 By Closing stock 3,20,000
To Gross profit c/d 6,80,000 _______
30,40,000 30,40,000
To Salaries (W.N.5) 2,37,000 By Gross profit b/d 6,80,000
To Rent 1,32,000 By Discount received 32,000
To Sundry trade expenses 81,000
To Discount allowed 20,000
To Depreciation on furniture & fixtures 26,000
To Net profit 2,16,000 ______
7,12,000 7,12,000
Balance Sheet
as at 31st March, 2019
Liabilities Amount Amount
` `
Capital Fixed assets
Opening balance (W.N.7) 5,16,000 Furniture & fixtures 2,34,000
Add: Net profit 2,16,000 Current assets:
7,32,000 Stock 3,20,000
Less: Drawings 1,20,000 6,12,000 Debtors (W.N.4) 1,47,000
Current liabilities & provisions: Cash & bank (W.N.6) 2,01,000
Creditors 1,90,000
Bills payable 80,000
Outstanding salaries 20,000 _______
9,02,000 9,02,000
Working Notes:
1. Bills Payable Account
` `
To Cash/Bank 4,30,000 By Balance b/d 70,000
To Balance c/d 80,000 By Trade creditors (Bal. fig.) 4,40,000
5,10,000 5,10,000
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2. Creditors Account
` `
To Cash/Bank 9,73,000 By Balance b/d 1,35,000
To Bills payable A/c (W.N.1) 4,40,000 By Credit purchases (Bal. fig.) 15,00,000
To Discount received 32,000
To Balance c/d 1,90,000 _______
16,35,000 16,35,000
3. Calculation of credit sales
`
Opening stock 2,45,000
Add: Purchases
Cash purchases 6,15,000
Credit purchases 15,00,000 21,15,000
23,60,000
Less: Closing Stock 3,20,000
Cost of goods sold 20,40,000
Gross profit ratio on sales 25%
Gross profit ratio on sales
100
Total sales 20,40,000×
75
? ?
? ?
? ?
` 
27,20,000
Less: Cash sales 16,20,000
Credit sales 11,00,000
4. Debtors Account
` `
To Balance b/d 1,25,000 By Cash/Bank 10,58,000
To Credit sales (W.N.3) 11,00,000 By Discount allowed 20,000
________ By Balance c/d (Bal. fig.) 1,47,000
12,25,000 12,25,000
5. Salaries
`
Salaries paid during the year 2,36,000
Add: Outstanding salaries as on 31.3.2019 20,000
2,56,000
Less: Outstanding salaries as on 31.03.2018 19,000
2,37,000
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6. Cash / Bank Account
` `
To Balance b/d 1,10,000 By Cash purchases 6,15,000
To Cash sales 16,20,000 By Creditors 9,73,000
To Debtors 10,58,000 By Bills payable 4,30,000
By Drawings 1,20,000
By Salaries 2,36,000
By Rent 1,32,000
By Sundry trade expenses 81,000
_______ By Balance c/d 2,01,000
27,88,000 27,88,000
7. Balance Sheet as at 31st March, 2018
` `
Creditors 1,35,000 Furniture & fixtures 2,60,000
Bills payable 70,000 Stock 2,45,000
Outstanding salaries 19,000 Debtors 1,25,000
Capital (Bal. fig.) 5,16,000 Cash & bank 1,10,000
7,40,000 7,40,000
Q-2 Archana Enterprises maintain their books of accounts under single entry system. The Balance Sheet as
on 31
st
 March, 2018 was as follows :
Liabilities Amount(`) Assets Amount(`)
Capital A/c 6,75,000 Furniture & fixtures 1,50,000
Trade creditors 7,57,500 Stock 9,15,000
Outstanding exp. 67,500 Trade debtors 3,12,000
Prepaid insurance 3,000
________ Cash in hand & at bank 1,20,000
15,00,000 15,00,000
The following was the summary of cash and bank book for the year ended 31
st
 March, 2019:
Receipts Amount(`) Payments Amount (`)
Cash in hand & at Payment  to trade creditors 1,24,83,000
Bank on 1
st
 April, 2018 1,20,000 Sundry expenses paid 9,31,050
Cash sales 1,10,70,000 Drawings 3,60,000
Receipts   from  trade debtors 27,75,000 Cash in hand & at Bank 1,90,950
________ on 31
st
 March, 2019 ________
1,39,65,000 1,39,65,000
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Page 5


Accounts from Incomplete Records
Q-1 The books of account of Mr. Maan of Mumbai showed the following figures:
31.3.2018 ` 31.3.2019 `
Furniture & fixtures 2,60,000 2,34,000
Stock 2,45,000 3,20,000
Debtors 1,25,000 ?
Cash in hand & bank 1,10,000 ?
Creditors 1,35,000 1,90,000
Bills payable 70,000 80,000
Outstanding salaries 19,000 20,000
An analysis of the cash book revealed the following:
`
Cash sales 16,20,000
Collection from debtors 10,58,000
Discount allowed to debtors 20,000
Cash purchases 6,15,000
Payment to creditors 9,73,000
Discount received from creditors 32,000
Payment for bills payable 4,30,000
Drawings for domestic expenses 1,20,000
Salaries paid 2,36,000
Rent paid 1,32,000
Sundry trade expenses 81,000
Depreciation is provided on furniture & fixtures @10% p.a. on diminishing balance method. Mr. Maan
maintains a steady gross profit rate of 25% on sales.
You are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and
Balance Sheet as on that date.
Join Us on Telegram http://t.me/canotes_ipcc
Ans. Trading & Profit and Loss Account In the books of Mr. Maan
for the year ended 31st March, 2019
Particulars Amount Particulars Amount
` `
To Opening stock 2,45,000 By Sales:
To Purchases: Cash 16,20,000
Cash 6,15,000 Credit (W.N.3) 11,00,000
Credit (W.N. 2) 15,00,000 By Closing stock 3,20,000
To Gross profit c/d 6,80,000 _______
30,40,000 30,40,000
To Salaries (W.N.5) 2,37,000 By Gross profit b/d 6,80,000
To Rent 1,32,000 By Discount received 32,000
To Sundry trade expenses 81,000
To Discount allowed 20,000
To Depreciation on furniture & fixtures 26,000
To Net profit 2,16,000 ______
7,12,000 7,12,000
Balance Sheet
as at 31st March, 2019
Liabilities Amount Amount
` `
Capital Fixed assets
Opening balance (W.N.7) 5,16,000 Furniture & fixtures 2,34,000
Add: Net profit 2,16,000 Current assets:
7,32,000 Stock 3,20,000
Less: Drawings 1,20,000 6,12,000 Debtors (W.N.4) 1,47,000
Current liabilities & provisions: Cash & bank (W.N.6) 2,01,000
Creditors 1,90,000
Bills payable 80,000
Outstanding salaries 20,000 _______
9,02,000 9,02,000
Working Notes:
1. Bills Payable Account
` `
To Cash/Bank 4,30,000 By Balance b/d 70,000
To Balance c/d 80,000 By Trade creditors (Bal. fig.) 4,40,000
5,10,000 5,10,000
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2. Creditors Account
` `
To Cash/Bank 9,73,000 By Balance b/d 1,35,000
To Bills payable A/c (W.N.1) 4,40,000 By Credit purchases (Bal. fig.) 15,00,000
To Discount received 32,000
To Balance c/d 1,90,000 _______
16,35,000 16,35,000
3. Calculation of credit sales
`
Opening stock 2,45,000
Add: Purchases
Cash purchases 6,15,000
Credit purchases 15,00,000 21,15,000
23,60,000
Less: Closing Stock 3,20,000
Cost of goods sold 20,40,000
Gross profit ratio on sales 25%
Gross profit ratio on sales
100
Total sales 20,40,000×
75
? ?
? ?
? ?
` 
27,20,000
Less: Cash sales 16,20,000
Credit sales 11,00,000
4. Debtors Account
` `
To Balance b/d 1,25,000 By Cash/Bank 10,58,000
To Credit sales (W.N.3) 11,00,000 By Discount allowed 20,000
________ By Balance c/d (Bal. fig.) 1,47,000
12,25,000 12,25,000
5. Salaries
`
Salaries paid during the year 2,36,000
Add: Outstanding salaries as on 31.3.2019 20,000
2,56,000
Less: Outstanding salaries as on 31.03.2018 19,000
2,37,000
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6. Cash / Bank Account
` `
To Balance b/d 1,10,000 By Cash purchases 6,15,000
To Cash sales 16,20,000 By Creditors 9,73,000
To Debtors 10,58,000 By Bills payable 4,30,000
By Drawings 1,20,000
By Salaries 2,36,000
By Rent 1,32,000
By Sundry trade expenses 81,000
_______ By Balance c/d 2,01,000
27,88,000 27,88,000
7. Balance Sheet as at 31st March, 2018
` `
Creditors 1,35,000 Furniture & fixtures 2,60,000
Bills payable 70,000 Stock 2,45,000
Outstanding salaries 19,000 Debtors 1,25,000
Capital (Bal. fig.) 5,16,000 Cash & bank 1,10,000
7,40,000 7,40,000
Q-2 Archana Enterprises maintain their books of accounts under single entry system. The Balance Sheet as
on 31
st
 March, 2018 was as follows :
Liabilities Amount(`) Assets Amount(`)
Capital A/c 6,75,000 Furniture & fixtures 1,50,000
Trade creditors 7,57,500 Stock 9,15,000
Outstanding exp. 67,500 Trade debtors 3,12,000
Prepaid insurance 3,000
________ Cash in hand & at bank 1,20,000
15,00,000 15,00,000
The following was the summary of cash and bank book for the year ended 31
st
 March, 2019:
Receipts Amount(`) Payments Amount (`)
Cash in hand & at Payment  to trade creditors 1,24,83,000
Bank on 1
st
 April, 2018 1,20,000 Sundry expenses paid 9,31,050
Cash sales 1,10,70,000 Drawings 3,60,000
Receipts   from  trade debtors 27,75,000 Cash in hand & at Bank 1,90,950
________ on 31
st
 March, 2019 ________
1,39,65,000 1,39,65,000
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Additional Information:
(i) Discount allowed to trade debtors and received from trade creditors amounted to ` 54,000 and `
42,500 respectively, (for the year ended 31
st
 March, 2019)
(ii) Annual fire insurance premium of ` 9,000 was paid every year on 1
st
 August for the renewal of the
policy.
(iii) Furniture & fixtures were subject to depreciation @ 15% p.a. on diminishing balance method.
(iv) The following are the balances as on 31
st
 March, 2019 :
Stock ` 9,75,000
Trade debtors ` 3,43,000
Outstanding expenses ` 55,200
(v) Gross profit ratio of 10% on sales is maintained throughout the year.
You are required to prepare Trading and Profit & Loss account for the year ended 31
st
 March, 2019, and
Balance Sheet as on that date.
Ans. Trading and Profit and Loss Account of Archana Enterprises
for the year ended 31st March, 2019
` `
To Opening Stock 9,15,000 By  Sales
To Purchases (W.N. 2) 125,97,000 Cash 110,70,000
To Gross profit c/d 13,93,000 Credit (W.N. 1) 28,60,000 139,30,000
(10% of 139,30,000) ________ By Closing stock 9,75,000
149,05,000 149,05,000
To Sundry expenses (W.N. 4) 9,18,750 By Gross profit b/d 13,93,000
To Discount allowed 54,000 By Discount received 42,500
To Depreciation 22,500
(15% `1,50,000)
To Net Profit (b.f.) 4,40,250 _______
14,35,500 14,35,500
Balance Sheet of Archana Enterprises as at 31st March, 2019
Liabilities Amount Assets Amount
` `
Capital Furniture & Fittings 1,50,000
Opening balance 6,75,000 Less: Depreciation (22,500) 1,27,500
Less: Drawing (3,60,000) Stock 9,75,000
3,15,000 Trade Debtors 3,43,000
Add: Net profit
for the years 4,40,250 7,55,250 Unexpired insurance 3,000
Trade creditors
(W.N. 3) 8,29,000 Cash in hand & at bank 1,90,950
Outstanding expenses 55,200 ________
16,39,450 16,39,450
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