Super 7 - Financial Statements: With Adjustments Commerce Notes | EduRev

Crash Course of Accountancy - Class 11

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Commerce : Super 7 - Financial Statements: With Adjustments Commerce Notes | EduRev

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Super 7 
Ques 1 
From the following trail balance of Ram Kumar, you are required to prepare Trading & Profit & Loss A/c fo r the year 
ended on 31
st
 March, 2013 and a Balance Sheet as at that date. 
Name of Accounts Dr (?) Cr. (?) 
Capital  50,000 
Drawings 10,000  
Debtors & Creditors 24,000 16,000 
6% Loan  10,000 
Interest on Loan 300  
Cash 3,000  
Provision for Bad Debts  1,000 
Wages 6,000  
Stock on 1.4.2012 16,700  
Computer 10,000  
Bank 7,500  
Furniture 20,000  
Carriage Outward 4,500  
Carriage Inward 5,000  
Salaries 12,000  
Rent 8,000  
Bad Debts 600  
Purchases and Sales 60,000 1,16,000 
Returns 2,000 1,000 
Advertising 4,500  
Discount  2,600 
Insurance Premium 2,000  
B/R & B/P 10,000 8,000 
Commission  1,500 
 2,06,100 2,06,100 
Adjustments: 
 (1) Depreciate furniture by 5% and Computer by 10%. 
 (2) Salaries outstanding by ?1,200. 
 (3) Insurance Premium is paid for the year ending 30
th
 June, 2013. 
 (4) Wages have been paid upto 30
th
 June, 2013. 
 (5) Provision for Bad Debts is to be maintained at 5% on debtors. 
 (6) Stock on 31
st
 March, 2013 was valued at ?19,400. 
 
  
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Super 7 
Ques 1 
From the following trail balance of Ram Kumar, you are required to prepare Trading & Profit & Loss A/c fo r the year 
ended on 31
st
 March, 2013 and a Balance Sheet as at that date. 
Name of Accounts Dr (?) Cr. (?) 
Capital  50,000 
Drawings 10,000  
Debtors & Creditors 24,000 16,000 
6% Loan  10,000 
Interest on Loan 300  
Cash 3,000  
Provision for Bad Debts  1,000 
Wages 6,000  
Stock on 1.4.2012 16,700  
Computer 10,000  
Bank 7,500  
Furniture 20,000  
Carriage Outward 4,500  
Carriage Inward 5,000  
Salaries 12,000  
Rent 8,000  
Bad Debts 600  
Purchases and Sales 60,000 1,16,000 
Returns 2,000 1,000 
Advertising 4,500  
Discount  2,600 
Insurance Premium 2,000  
B/R & B/P 10,000 8,000 
Commission  1,500 
 2,06,100 2,06,100 
Adjustments: 
 (1) Depreciate furniture by 5% and Computer by 10%. 
 (2) Salaries outstanding by ?1,200. 
 (3) Insurance Premium is paid for the year ending 30
th
 June, 2013. 
 (4) Wages have been paid upto 30
th
 June, 2013. 
 (5) Provision for Bad Debts is to be maintained at 5% on debtors. 
 (6) Stock on 31
st
 March, 2013 was valued at ?19,400. 
 
  
          
                                                       
 
Ques 2 
The following is the Trial Balance of Ram Krishan Vyas as at 31st March, 2010. Prepare Trading and Profit & Loss 
Account and Balance Sheet after making the following adjustments :- —  
(i) Value of Closing Stock ?29,638.  
(ii) Depreciate Plant and Machinery 10%. Furniture 5% and Horses and Carts ? 1,000. Also write off Goodwill 
by ?3,000.  
(iii) Provide 5% for Doubtful Debts on Debtors.  
(iv) Prepaid expenses : Insurance ?300 and taxes ?190.  
(v)  3/5th of insurance & taxes; rent and general expenses to be charged to factory and the balance to the 
office.  
(vi) Advertising is to be written off over three years.  
Commission to Manager at 10% on net profit after charging such commission 
Particulars ? Particulars ? 
Plat and Machinery 
Manufacturing Wages  
Salaries  
Furniture  
Freight on Purchase's  
Freight on Sales  
Building  
Manufacturing Expenses  
Fuel and Power  
Electricity (Factory)  
Insurance & Taxes  
Goodwill  
Rent  
Debtors  
Stable Expenses  
Opening Stock  
Horses and Carts  
Purchases  
Sales Returns  
General Expenses  
Bad-Debts  
Interest & Bank Charges  
Advertising  
Bank Balance  
Cash  
19,720 
34,965 
10,135 
9,480 
1,980 
2,150 
25,000 
9,455 
1,276 
986 
4,175 
30,000 
2,400 
78,140 
2,473 
34.170 
.5.165 
97.165 
3.170 
8.000 
1.485 
475 
4.500 
7.540 
145 
Capital 
Creditors  
Bank Loan  
Purchases Return  
Sales  
Provision for Bad-Debts 
80,000 
50,160 
10,000 
1,140 
2,46,850 
6,000 
 3,94,150  3,94,150 
 
  
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Super 7 
Ques 1 
From the following trail balance of Ram Kumar, you are required to prepare Trading & Profit & Loss A/c fo r the year 
ended on 31
st
 March, 2013 and a Balance Sheet as at that date. 
Name of Accounts Dr (?) Cr. (?) 
Capital  50,000 
Drawings 10,000  
Debtors & Creditors 24,000 16,000 
6% Loan  10,000 
Interest on Loan 300  
Cash 3,000  
Provision for Bad Debts  1,000 
Wages 6,000  
Stock on 1.4.2012 16,700  
Computer 10,000  
Bank 7,500  
Furniture 20,000  
Carriage Outward 4,500  
Carriage Inward 5,000  
Salaries 12,000  
Rent 8,000  
Bad Debts 600  
Purchases and Sales 60,000 1,16,000 
Returns 2,000 1,000 
Advertising 4,500  
Discount  2,600 
Insurance Premium 2,000  
B/R & B/P 10,000 8,000 
Commission  1,500 
 2,06,100 2,06,100 
Adjustments: 
 (1) Depreciate furniture by 5% and Computer by 10%. 
 (2) Salaries outstanding by ?1,200. 
 (3) Insurance Premium is paid for the year ending 30
th
 June, 2013. 
 (4) Wages have been paid upto 30
th
 June, 2013. 
 (5) Provision for Bad Debts is to be maintained at 5% on debtors. 
 (6) Stock on 31
st
 March, 2013 was valued at ?19,400. 
 
  
          
                                                       
 
Ques 2 
The following is the Trial Balance of Ram Krishan Vyas as at 31st March, 2010. Prepare Trading and Profit & Loss 
Account and Balance Sheet after making the following adjustments :- —  
(i) Value of Closing Stock ?29,638.  
(ii) Depreciate Plant and Machinery 10%. Furniture 5% and Horses and Carts ? 1,000. Also write off Goodwill 
by ?3,000.  
(iii) Provide 5% for Doubtful Debts on Debtors.  
(iv) Prepaid expenses : Insurance ?300 and taxes ?190.  
(v)  3/5th of insurance & taxes; rent and general expenses to be charged to factory and the balance to the 
office.  
(vi) Advertising is to be written off over three years.  
Commission to Manager at 10% on net profit after charging such commission 
Particulars ? Particulars ? 
Plat and Machinery 
Manufacturing Wages  
Salaries  
Furniture  
Freight on Purchase's  
Freight on Sales  
Building  
Manufacturing Expenses  
Fuel and Power  
Electricity (Factory)  
Insurance & Taxes  
Goodwill  
Rent  
Debtors  
Stable Expenses  
Opening Stock  
Horses and Carts  
Purchases  
Sales Returns  
General Expenses  
Bad-Debts  
Interest & Bank Charges  
Advertising  
Bank Balance  
Cash  
19,720 
34,965 
10,135 
9,480 
1,980 
2,150 
25,000 
9,455 
1,276 
986 
4,175 
30,000 
2,400 
78,140 
2,473 
34.170 
.5.165 
97.165 
3.170 
8.000 
1.485 
475 
4.500 
7.540 
145 
Capital 
Creditors  
Bank Loan  
Purchases Return  
Sales  
Provision for Bad-Debts 
80,000 
50,160 
10,000 
1,140 
2,46,850 
6,000 
 3,94,150  3,94,150 
 
  
          
                                                       
 
Ques 3 
From the following Trial Balance of Sh. Govinda, prepare a Trading and Profit & Loss A/c for the year ended on 
31st March, 2012 and a Balance Sheet as at that date : 
Dr. Balance ? Cr. Balance ? 
Material Consumed 
Carriage  
Wages  
Power and Fuel  
Trade Expenses  
Bad Debts  
Returns  
Fire Insurance  
Rates & Taxes  
Cash in Hand  
Stock on 31st March, 2012  
Plant & Machinery  
Furniture  
Loose Tools  
Interest on Kapil’s Loan  
Debtors  
Salaries  
Bank Charges  
Coal, Gas and Water  
B/R  
1,50,000 
8,200 
36,100 
5,400 
14,500 
1,800 
5,000 
3,000 
5,200 
1,600 
46,500 
80,000 
18,000 
16,000 
600 
54,000 
20,000 
300 
2,200 
4,000 
Govinda’s Capital A/c 
Sales  
Loan from Kapil @12%  
  (Taken on 1-7-2011)  
Bank  
Outstanding Wages  
Trade Expenses accrued but not paid  
Discount  
Creditors  
Apprentice Premium  
B/P 
Provision for Doubtful Debts  
 
1,80,000 
2,40,000 
 
10,000 
8,200 
3,400 
 
2,000 
600 
12,400 
4,500 
3,700 
7,600 
 4,72,400  4,72,400 
 
Adjustments :—  
1.  Carry forward the following unexpired amounts : 
(a)  Fire Insurance   ?500  
(b)  Rates & Taxes   ?1,200  
(c)  Apprentice Premium   ?1,500  
2.  Wages include ?5,000 spent on installation of a new machine on 1st April. 2011.  
3.  Depreciation is to be charged on Plant and Machinery at 10% and Furniture at 20%. Loose Tools are 
revalued at ?12,000.  
4.  Make a provision of ?4,000 for Doubtful debts on Debtors.  
5.  Accrued Income ?2,300.  
 
  
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Super 7 
Ques 1 
From the following trail balance of Ram Kumar, you are required to prepare Trading & Profit & Loss A/c fo r the year 
ended on 31
st
 March, 2013 and a Balance Sheet as at that date. 
Name of Accounts Dr (?) Cr. (?) 
Capital  50,000 
Drawings 10,000  
Debtors & Creditors 24,000 16,000 
6% Loan  10,000 
Interest on Loan 300  
Cash 3,000  
Provision for Bad Debts  1,000 
Wages 6,000  
Stock on 1.4.2012 16,700  
Computer 10,000  
Bank 7,500  
Furniture 20,000  
Carriage Outward 4,500  
Carriage Inward 5,000  
Salaries 12,000  
Rent 8,000  
Bad Debts 600  
Purchases and Sales 60,000 1,16,000 
Returns 2,000 1,000 
Advertising 4,500  
Discount  2,600 
Insurance Premium 2,000  
B/R & B/P 10,000 8,000 
Commission  1,500 
 2,06,100 2,06,100 
Adjustments: 
 (1) Depreciate furniture by 5% and Computer by 10%. 
 (2) Salaries outstanding by ?1,200. 
 (3) Insurance Premium is paid for the year ending 30
th
 June, 2013. 
 (4) Wages have been paid upto 30
th
 June, 2013. 
 (5) Provision for Bad Debts is to be maintained at 5% on debtors. 
 (6) Stock on 31
st
 March, 2013 was valued at ?19,400. 
 
  
          
                                                       
 
Ques 2 
The following is the Trial Balance of Ram Krishan Vyas as at 31st March, 2010. Prepare Trading and Profit & Loss 
Account and Balance Sheet after making the following adjustments :- —  
(i) Value of Closing Stock ?29,638.  
(ii) Depreciate Plant and Machinery 10%. Furniture 5% and Horses and Carts ? 1,000. Also write off Goodwill 
by ?3,000.  
(iii) Provide 5% for Doubtful Debts on Debtors.  
(iv) Prepaid expenses : Insurance ?300 and taxes ?190.  
(v)  3/5th of insurance & taxes; rent and general expenses to be charged to factory and the balance to the 
office.  
(vi) Advertising is to be written off over three years.  
Commission to Manager at 10% on net profit after charging such commission 
Particulars ? Particulars ? 
Plat and Machinery 
Manufacturing Wages  
Salaries  
Furniture  
Freight on Purchase's  
Freight on Sales  
Building  
Manufacturing Expenses  
Fuel and Power  
Electricity (Factory)  
Insurance & Taxes  
Goodwill  
Rent  
Debtors  
Stable Expenses  
Opening Stock  
Horses and Carts  
Purchases  
Sales Returns  
General Expenses  
Bad-Debts  
Interest & Bank Charges  
Advertising  
Bank Balance  
Cash  
19,720 
34,965 
10,135 
9,480 
1,980 
2,150 
25,000 
9,455 
1,276 
986 
4,175 
30,000 
2,400 
78,140 
2,473 
34.170 
.5.165 
97.165 
3.170 
8.000 
1.485 
475 
4.500 
7.540 
145 
Capital 
Creditors  
Bank Loan  
Purchases Return  
Sales  
Provision for Bad-Debts 
80,000 
50,160 
10,000 
1,140 
2,46,850 
6,000 
 3,94,150  3,94,150 
 
  
          
                                                       
 
Ques 3 
From the following Trial Balance of Sh. Govinda, prepare a Trading and Profit & Loss A/c for the year ended on 
31st March, 2012 and a Balance Sheet as at that date : 
Dr. Balance ? Cr. Balance ? 
Material Consumed 
Carriage  
Wages  
Power and Fuel  
Trade Expenses  
Bad Debts  
Returns  
Fire Insurance  
Rates & Taxes  
Cash in Hand  
Stock on 31st March, 2012  
Plant & Machinery  
Furniture  
Loose Tools  
Interest on Kapil’s Loan  
Debtors  
Salaries  
Bank Charges  
Coal, Gas and Water  
B/R  
1,50,000 
8,200 
36,100 
5,400 
14,500 
1,800 
5,000 
3,000 
5,200 
1,600 
46,500 
80,000 
18,000 
16,000 
600 
54,000 
20,000 
300 
2,200 
4,000 
Govinda’s Capital A/c 
Sales  
Loan from Kapil @12%  
  (Taken on 1-7-2011)  
Bank  
Outstanding Wages  
Trade Expenses accrued but not paid  
Discount  
Creditors  
Apprentice Premium  
B/P 
Provision for Doubtful Debts  
 
1,80,000 
2,40,000 
 
10,000 
8,200 
3,400 
 
2,000 
600 
12,400 
4,500 
3,700 
7,600 
 4,72,400  4,72,400 
 
Adjustments :—  
1.  Carry forward the following unexpired amounts : 
(a)  Fire Insurance   ?500  
(b)  Rates & Taxes   ?1,200  
(c)  Apprentice Premium   ?1,500  
2.  Wages include ?5,000 spent on installation of a new machine on 1st April. 2011.  
3.  Depreciation is to be charged on Plant and Machinery at 10% and Furniture at 20%. Loose Tools are 
revalued at ?12,000.  
4.  Make a provision of ?4,000 for Doubtful debts on Debtors.  
5.  Accrued Income ?2,300.  
 
  
          
                                                       
 
Ques 4 
Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2012 from the following Balances of Mr. 
SardariLal : 
Particulars ? Particulars ? 
Capital Account 
Creditors—Trade  
Creditors Expenses  
Rent Received  
Purchases Returns  
Sales  
Bad-Debts Provision on 1
st
 April, 
2011  
Advertising Development  
Goodwill  
Plant and Machine 
Traveller’s Samples 
Stock on 1-4-2011  
Debtors  
Cash at Bank  
Cash in hand 
41,000 
30.000 
6,800  
600  
4,000 
2,89,600  
600  
 
8,000 
5,000 
20,000 
2,700 
32.000  
14,600  
2,000 
110 
Drawings 
Purchases  
Carriage Inwards  
Wages  
Power  
Rent and Insurance  
Salaries  
Discount Received  
General Charges  
Sales Returns  
Traveller’s Commission  
Traveller’s Salaries  
Discount Allowed 
5,000 
1,71,000 
1,500 
23,000 
9,000 
19,900 
34,400 
1,800 
8,600 
600 
2,890 
9,100 
5,000 
 
Adjustments :— The Closing stock was ?23,000 but there has been a loss by fire on 20th March, 2012, to the extent of 
?20,000, not covered by insurance. Depreciate Plant and Machinery by 10% and Traveller's Samples by 33
1
3
%. Increase 
the Bad-debts Provision to ?2,000. Write 20% off Advertising Development Account. Annual premium on insurance 
expiring 1st June, 2012 was?1,200. Provide for Manager’s commission @ 5% on Net Profits after charging such 
Commission.  
 
Ques 5 
 The following balances were extracted from the books of Mr. Din Dayal as at 31st March, 2014 : 
Particulars ? Particulars ? 
Stock at the beginning 
Rent  
Salary  
Bad-Debts  
Provision for Doubtful Debts  
Travelling Expenses  
Insurance Premium  
Proprietor's Withdrawals  
Telephone Charges  
Printing and Advertising 
Commission (Cr.)  
Rent from Sublet  
Land and Building  
Furniture  
Cash 
41,000 
9,600 
20,000 
400  
3,000 
1,400 
1,800 
4,000 
7,300 
5,000 
6,000 
4.800 
1,40,000 
10,000 
2,900 
Purchases 
Sales  
Returns (Dr.)  
Returns (Cr.)  
Carriage Inward  
Carriage Outward  
Capital  
Loan (Cr.)  
Sales Tax Collected  
Debtors  
Creditors  
Investments  
Interest on Investments  
 
2,20,000 
2,80,000 
6,000 
2,000 
3,500 
500 
1,75,000 
20,000 
3,000 
40,000 
24,00 
5,000 
600 
 
Prepare Trading and Profit & Loss Account for the year and a Balance Sheet as at 31st March, 2014, after taking into 
account the following : 
(1)  Stock was valued at ?75,000 on 31st March, 2014. You are informed that a fire occurred on 28th March, 2014 in 
the godown and snick of the value of ?10,000 was destroyed. Insurance Company admitted a claim of 75%.  
(2)  One-third of the commission received is in respect of work to be done next year.  
(3)  Create a provision of 5% for Doubtful Debts.  
(4)  50% of Printing and Advertising is to be carried forward as a charge in the following year.  
(5)  ?900 is due for interest on loan.  
(6)  Provide for Manager's Commission at 10% on Net Profit before charging such commission.  
 
Page 5


          
                                                       
 
 
  
  
  
  
 
Super 7 
Ques 1 
From the following trail balance of Ram Kumar, you are required to prepare Trading & Profit & Loss A/c fo r the year 
ended on 31
st
 March, 2013 and a Balance Sheet as at that date. 
Name of Accounts Dr (?) Cr. (?) 
Capital  50,000 
Drawings 10,000  
Debtors & Creditors 24,000 16,000 
6% Loan  10,000 
Interest on Loan 300  
Cash 3,000  
Provision for Bad Debts  1,000 
Wages 6,000  
Stock on 1.4.2012 16,700  
Computer 10,000  
Bank 7,500  
Furniture 20,000  
Carriage Outward 4,500  
Carriage Inward 5,000  
Salaries 12,000  
Rent 8,000  
Bad Debts 600  
Purchases and Sales 60,000 1,16,000 
Returns 2,000 1,000 
Advertising 4,500  
Discount  2,600 
Insurance Premium 2,000  
B/R & B/P 10,000 8,000 
Commission  1,500 
 2,06,100 2,06,100 
Adjustments: 
 (1) Depreciate furniture by 5% and Computer by 10%. 
 (2) Salaries outstanding by ?1,200. 
 (3) Insurance Premium is paid for the year ending 30
th
 June, 2013. 
 (4) Wages have been paid upto 30
th
 June, 2013. 
 (5) Provision for Bad Debts is to be maintained at 5% on debtors. 
 (6) Stock on 31
st
 March, 2013 was valued at ?19,400. 
 
  
          
                                                       
 
Ques 2 
The following is the Trial Balance of Ram Krishan Vyas as at 31st March, 2010. Prepare Trading and Profit & Loss 
Account and Balance Sheet after making the following adjustments :- —  
(i) Value of Closing Stock ?29,638.  
(ii) Depreciate Plant and Machinery 10%. Furniture 5% and Horses and Carts ? 1,000. Also write off Goodwill 
by ?3,000.  
(iii) Provide 5% for Doubtful Debts on Debtors.  
(iv) Prepaid expenses : Insurance ?300 and taxes ?190.  
(v)  3/5th of insurance & taxes; rent and general expenses to be charged to factory and the balance to the 
office.  
(vi) Advertising is to be written off over three years.  
Commission to Manager at 10% on net profit after charging such commission 
Particulars ? Particulars ? 
Plat and Machinery 
Manufacturing Wages  
Salaries  
Furniture  
Freight on Purchase's  
Freight on Sales  
Building  
Manufacturing Expenses  
Fuel and Power  
Electricity (Factory)  
Insurance & Taxes  
Goodwill  
Rent  
Debtors  
Stable Expenses  
Opening Stock  
Horses and Carts  
Purchases  
Sales Returns  
General Expenses  
Bad-Debts  
Interest & Bank Charges  
Advertising  
Bank Balance  
Cash  
19,720 
34,965 
10,135 
9,480 
1,980 
2,150 
25,000 
9,455 
1,276 
986 
4,175 
30,000 
2,400 
78,140 
2,473 
34.170 
.5.165 
97.165 
3.170 
8.000 
1.485 
475 
4.500 
7.540 
145 
Capital 
Creditors  
Bank Loan  
Purchases Return  
Sales  
Provision for Bad-Debts 
80,000 
50,160 
10,000 
1,140 
2,46,850 
6,000 
 3,94,150  3,94,150 
 
  
          
                                                       
 
Ques 3 
From the following Trial Balance of Sh. Govinda, prepare a Trading and Profit & Loss A/c for the year ended on 
31st March, 2012 and a Balance Sheet as at that date : 
Dr. Balance ? Cr. Balance ? 
Material Consumed 
Carriage  
Wages  
Power and Fuel  
Trade Expenses  
Bad Debts  
Returns  
Fire Insurance  
Rates & Taxes  
Cash in Hand  
Stock on 31st March, 2012  
Plant & Machinery  
Furniture  
Loose Tools  
Interest on Kapil’s Loan  
Debtors  
Salaries  
Bank Charges  
Coal, Gas and Water  
B/R  
1,50,000 
8,200 
36,100 
5,400 
14,500 
1,800 
5,000 
3,000 
5,200 
1,600 
46,500 
80,000 
18,000 
16,000 
600 
54,000 
20,000 
300 
2,200 
4,000 
Govinda’s Capital A/c 
Sales  
Loan from Kapil @12%  
  (Taken on 1-7-2011)  
Bank  
Outstanding Wages  
Trade Expenses accrued but not paid  
Discount  
Creditors  
Apprentice Premium  
B/P 
Provision for Doubtful Debts  
 
1,80,000 
2,40,000 
 
10,000 
8,200 
3,400 
 
2,000 
600 
12,400 
4,500 
3,700 
7,600 
 4,72,400  4,72,400 
 
Adjustments :—  
1.  Carry forward the following unexpired amounts : 
(a)  Fire Insurance   ?500  
(b)  Rates & Taxes   ?1,200  
(c)  Apprentice Premium   ?1,500  
2.  Wages include ?5,000 spent on installation of a new machine on 1st April. 2011.  
3.  Depreciation is to be charged on Plant and Machinery at 10% and Furniture at 20%. Loose Tools are 
revalued at ?12,000.  
4.  Make a provision of ?4,000 for Doubtful debts on Debtors.  
5.  Accrued Income ?2,300.  
 
  
          
                                                       
 
Ques 4 
Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2012 from the following Balances of Mr. 
SardariLal : 
Particulars ? Particulars ? 
Capital Account 
Creditors—Trade  
Creditors Expenses  
Rent Received  
Purchases Returns  
Sales  
Bad-Debts Provision on 1
st
 April, 
2011  
Advertising Development  
Goodwill  
Plant and Machine 
Traveller’s Samples 
Stock on 1-4-2011  
Debtors  
Cash at Bank  
Cash in hand 
41,000 
30.000 
6,800  
600  
4,000 
2,89,600  
600  
 
8,000 
5,000 
20,000 
2,700 
32.000  
14,600  
2,000 
110 
Drawings 
Purchases  
Carriage Inwards  
Wages  
Power  
Rent and Insurance  
Salaries  
Discount Received  
General Charges  
Sales Returns  
Traveller’s Commission  
Traveller’s Salaries  
Discount Allowed 
5,000 
1,71,000 
1,500 
23,000 
9,000 
19,900 
34,400 
1,800 
8,600 
600 
2,890 
9,100 
5,000 
 
Adjustments :— The Closing stock was ?23,000 but there has been a loss by fire on 20th March, 2012, to the extent of 
?20,000, not covered by insurance. Depreciate Plant and Machinery by 10% and Traveller's Samples by 33
1
3
%. Increase 
the Bad-debts Provision to ?2,000. Write 20% off Advertising Development Account. Annual premium on insurance 
expiring 1st June, 2012 was?1,200. Provide for Manager’s commission @ 5% on Net Profits after charging such 
Commission.  
 
Ques 5 
 The following balances were extracted from the books of Mr. Din Dayal as at 31st March, 2014 : 
Particulars ? Particulars ? 
Stock at the beginning 
Rent  
Salary  
Bad-Debts  
Provision for Doubtful Debts  
Travelling Expenses  
Insurance Premium  
Proprietor's Withdrawals  
Telephone Charges  
Printing and Advertising 
Commission (Cr.)  
Rent from Sublet  
Land and Building  
Furniture  
Cash 
41,000 
9,600 
20,000 
400  
3,000 
1,400 
1,800 
4,000 
7,300 
5,000 
6,000 
4.800 
1,40,000 
10,000 
2,900 
Purchases 
Sales  
Returns (Dr.)  
Returns (Cr.)  
Carriage Inward  
Carriage Outward  
Capital  
Loan (Cr.)  
Sales Tax Collected  
Debtors  
Creditors  
Investments  
Interest on Investments  
 
2,20,000 
2,80,000 
6,000 
2,000 
3,500 
500 
1,75,000 
20,000 
3,000 
40,000 
24,00 
5,000 
600 
 
Prepare Trading and Profit & Loss Account for the year and a Balance Sheet as at 31st March, 2014, after taking into 
account the following : 
(1)  Stock was valued at ?75,000 on 31st March, 2014. You are informed that a fire occurred on 28th March, 2014 in 
the godown and snick of the value of ?10,000 was destroyed. Insurance Company admitted a claim of 75%.  
(2)  One-third of the commission received is in respect of work to be done next year.  
(3)  Create a provision of 5% for Doubtful Debts.  
(4)  50% of Printing and Advertising is to be carried forward as a charge in the following year.  
(5)  ?900 is due for interest on loan.  
(6)  Provide for Manager's Commission at 10% on Net Profit before charging such commission.  
 
          
                                                       
 
Ques 6 
On 31st March, 2012 the following Trial Balance of Sh. Ajay Oswal was taken out. Prepare Trading and Profit & Lo ss 
Account for the year and Balance Sheet at that date after making the following adjustments :—  
(i)  Stock on 31st March, 2012 was valued ?26,000.  
(ii)  General Manager is entitled to a Commission of 5% on Net Profits after charging such Commission.  
(iii) ?2,000 paid for Salary & Wages have been included in Sundry Debtors.  
(iv) Increase Bad-debts by ?800 and create provision for Doubtful Debts at 10%.  
(v)  General Expenses include insurance premium paid up to 30th June, 2012 @?3,000 per annum. (vi)  ?600 
out of the Advertisement Expenses are to be carried forward to the next year.  
(vii)  Charge one-fourth of 'Salaries and Wages' to Trading A/c.  
(viii)  Accrued Income ?2,500.  
 Dr.(?) Cr.(?) 
Capital 
Income Tax  
Stock on 1-4-2011  
Return Inwards  
Carriage Inwards  
Deposit with PNB  
Return Outwards  
Carriage Outwards  
Loan to Mr. Malik @ 18% p.a. given on 1-7-2011  
Interest on the above  
Rent  
Outstanding Rent  
Purchases 
Debtors  
Goodwill  
Land and Buildings  
Furniture  
Salaries & Wages  
Creditors  
Advertisement Expenses  
Provision for Doubtful Debts  
Bad-Debts  
Patents and Paterns 
Cash in hand  
Sales  
General Expenses  
 
8,000 
16,000 
5,600 
8,200 
15,000 
 
3,700 
10,000 
 
13,000 
 
1,48,000 
75,800 
25,000 
2,00,000 
15,000 
38,000 
 
3,000 
 
2,000 
6,000 
8,900 
 
4,500 
3,00,000 
 
 
 
 
 
4,100 
 
 
900 
 
1,000 
 
 
 
 
 
 
26,200 
 
3,500 
 
 
2,70,000 
 
 6,05,700 6,05,700 
 
  
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