Question 9:
From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2022:
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Heads
of Accounts |
Debit Balances (`) |
Credit Balances (`) |
|
|
Purchases |
|
2,50,000 |
… |
|
Sales |
|
… |
5,00,000 |
|
Returns Inward |
|
12,000 |
... |
|
Returns
Outward |
|
… |
10,000 |
|
Carriage |
|
8,000 |
… |
|
Wages |
|
60,000 |
… |
|
Miscellaneous
Expenses |
|
2,000 |
… |
|
Insurance |
|
1,200 |
… |
|
Repairs |
|
8,000 |
… |
|
Debtors |
|
1,15,000 |
… |
|
Creditors |
|
… |
1,00,000 |
|
Printing
and Stationery |
|
6,000 |
… |
|
Advertisement |
|
15,000 |
… |
|
Bills
Receivable |
|
4,000 |
… |
|
Bills
Payable |
|
… |
2,000 |
|
Opening
Stock |
|
30,000 |
… |
|
Cash
in Hand |
|
12,000 |
… |
|
Interest
on Bank Loan |
|
2,800 |
… |
|
Machinery |
|
2,80,000 |
… |
|
Furniture |
|
34,000 |
… |
|
Drawings |
|
20,000 |
… |
|
Commission |
|
… |
1,000 |
|
12%
Bank Loan |
|
… |
30,000 |
|
Capital |
|
… |
2,40,000 |
|
Rent
Received |
|
… |
5,000 |
|
Cash
at Bank |
|
28,000 |
… |
|
Total |
|
8,88,000 |
8,88,000 |
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|
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Additional Information:
(i) Closing Stock on 31st March, 2022 was
` 21,000.
(ii) Rent of ` 1,200 has been received in advance.
(iii) Outstanding liability for Miscellaneous expenses
` 12,000.
(iv) Commission earned during the year but not
received was ` 2,100.
(v) Goods costing ` 2,000 were taken by the proprietor for his personal use but
entry was not passed in the books of account.
Answer:
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Financial Statement of Mahesh |
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|
Trading Account for
the year ended March 31, 2022 |
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|
Dr. |
|
|
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
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|
Opening stock |
30,000 |
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|
|
|
|
Purchases
2,50,000 |
|
Sales |
5,00,000 |
|
|
|
Less: Drawings |
(2,000) |
|
Less: Return Inwards |
(12,000) |
4,88,000 |
|
Less: Return Outwards |
(10,000) |
2,38,000 |
Closing Stock |
21,000 |
|
|
Carriage |
8,000 |
|
|
||
|
Wages |
60,000 |
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|
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|
Gross Profit (Balancing Figure) |
1,73,000 |
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|
5,09,000 |
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5,09,000 |
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Profit and Loss Account for
the year ended March 31, 2022 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
(`) |
Particulars |
(`) |
||||
|
Miscellaneous expenses |
2,000 |
|
Gross Profit |
1,73,000 |
|||
|
Add: Outstanding Miscellaneous Expenses |
12,000 |
14,000 |
Commission |
1,000 |
|
||
|
Insurance |
1,200 |
Add: Accrued Commission |
2,100 |
3,100 |
|||
|
Repairs |
8,000 |
Rent Received |
5,000 |
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|
Advertisement |
15,000 |
Less: Advance Rent |
1,200 |
3,800 |
|||
|
Interest on Bank Loan |
2,800 |
|
|
|
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Add: Interest Outstanding |
800 |
3,600 |
|
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Printing and Stationary |
6,000 |
|
|
||||
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Net Profit (Balancing Figure) |
1,32,100 |
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|
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|
|
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|
||||
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|
1,79,900 |
|
1,79,900 |
||||
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|
Balance Sheet as
on March 31, 2022 |
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|
Liabilities |
(`) |
Assets |
(`) |
|
|
Capital |
2,40,000 |
|
Fixed Assets |
|
|
Less: Drawings |
(22,000) |
|
Machinery |
2,80,000 |
|
Add: Net Profit |
1,32,100 |
3,50,100 |
Furniture |
34,000 |
|
10% Loan from Bank |
30,000 |
|
Current Assets |
|
|
Add: Outstanding Interest |
800 |
30,800 |
Closing Stock |
21,000 |
|
Current Liabilities |
|
Debtors |
1,15,000 |
|
|
Creditors |
1,00,000 |
Bills Receivable |
4,000 |
|
|
Bills Payable |
2,000 |
Cash at Bank |
28,000 |
|
|
Advance Rent |
1,200 |
Cash in Hand |
12,000 |
|
|
Outstanding Trade Expenses |
12,000 |
Commission Accrued |
2,100 |
|
|
|
4,96,100 |
|
4,96,100 |
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Working Notes:
Calculation of Outstanding Interest on Loan
|
Interest on loan (30,000 × 12%) |
3,600 |
|
Less: Interest Paid |
(2,800) |
|
Interest Outstanding on Loan |
800 |
Question 10:
From the following Trial Balance and other information, prepare Trading and
Profit and Loss Account for the year ended 31st March, 2022 and Balance Sheet
as at that date:
|
Particulars |
Dr. (`) |
Cr. (`) |
|
|
Sundry
Debtors |
|
3,20,000 |
… |
|
Stock
on 1st April, 2018 |
|
2,20,000 |
… |
|
Cash
in Hand |
|
350 |
… |
|
Cash
at Bank |
|
15,450 |
… |
|
Plant
and Machinery |
|
1,75,000 |
… |
|
Sundry
Creditors |
|
… |
1,06,500 |
|
General
Expenses |
|
10,750 |
… |
|
Sales |
|
… |
13,45,000 |
|
Salaries |
|
22,250 |
… |
|
Carriage
Outwards |
|
4,000 |
… |
|
Rent |
|
9,000 |
… |
|
Bills
Payable |
|
… |
75,000 |
|
Purchases |
|
11,88,700 |
… |
|
Discounts |
|
11,000 |
… |
|
Premises |
|
3,45,000 |
… |
|
Capital
on 1st April, 2018 |
|
… |
7,95,000 |
|
Total |
|
23,21,500 |
23,21,500 |
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Stock on 31st March, 2022 was ` 1,24,500. Rent was unpaid to the
extent of ` 850 and ` 1,500 were outstanding for General Expenses;
` 4,000 are to
be written off as bad debts out of the above debtors; and 5% is to be provided
for doubtful debts. Depreciate Plant and Machinery by 10% and Premises by 2%.
Manager is entitled to a commission of 5% on net profit after charging his
commission.
Answer:
|
Financial Statement Trading Account for
the year ended March 31, 2022 |
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|
Dr. |
|
|
Cr. |
|
Particulars |
(`) |
Particulars |
(`) |
|
Opening Stock |
2,20,000 |
Sales |
13,45,000 |
|
Purchases |
11,88,700 |
Closing Stock |
1,24,500 |
|
Gross Profit (Balancing Figure) |
60,800 |
|
|
|
|
14,69,500 |
|
14,69,500 |
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|
Profit and Loss Account for
the year ended March 31, 2022 |
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|
Dr. |
|
|
|
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
|||
|
Rent |
9,000 |
|
Gross Profit |
60,800 |
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Add: Outstanding Rent |
850 |
9,850 |
Net Loss (Balancing Figure) |
42,750 |
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|
General Expenses |
10,750 |
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Add: Outstanding General Expenses |
1,500 |
12,250 |
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Bad Debts |
4,000 |
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Add: Provision for Debts |
15,800 |
19,800 |
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Depreciation on |
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Plant and Machinery |
17,500 |
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Business Premises |
6,900 |
24,400 |
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Salaries |
22,250 |
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Carriage Outwards |
4,000 |
|
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Discount |
11,000 |
|
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|||
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|
1,03,550 |
|
1,03,550 |
|||
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|
Balance Sheet as
on March 31, 2022 |
|||||
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Capital |
7,95,000 |
|
Fixed Assets |
|
|
|
Less: Net Loss |
(42,750) |
7,52,250 |
Plant and Machinery |
1,75,000 |
|
|
Current Liabilities |
|
Less: 10% Depreciation |
(17,500) |
1,57,500 |
|
|
Sundry Creditors |
1,06,500 |
Premises |
3,45,000 |
|
|
|
Bills Payable |
75,000 |
Less: 2% Depreciation |
(6,900) |
3,38,100 |
|
|
Rent Outstanding |
850 |
Current Assets |
|
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|
General Expenses Outstanding |
1,500 |
Closing Stock |
1,24,500 |
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Sundry Debtors |
3,20,000 |
|
|
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Less: Bad Debts |
(4,000) |
|
|
|
|
|
|
3,16,000 |
|
|
|
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Less: 5% Provision for Doubtful Debts |
(15,80) |
3,00,200 |
|
|
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Cash at Bank |
15,450 |
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Cash in Hand |
350 |
||
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|
9,36,100 |
|
9,36,100 |
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Note: In the question, Manager Commission is given as 5% on Net Profit after charging commission. But, during the year the firm had a Net Loss of Rs 42,750, therefore, manager commission is not payable.
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