1. Sunrise company ltd. is a company with an authorized capital of Rs.

5,00,000/- divided into 5,000 equity

shares of Rs. 100/- each, 2,500 shares were called and fully paid, gives you the following ledger balance as
on 31/03/2013
Particulars Amount (Rs.)
Stock (1/04/2012)
Sales
Purchases
Wages
Discount allowed
Discount received
Insurance paid (up to 30/06/2013)
Salaries
Rent
General expenses
P&L A/c (Cr.)
Printing and stationery
Advertisement
Bonus
Debtors
Creditors
Plant & machinery
Furniture
Cash in hand
Reserves
Loan from M.D
Bad debts
Calls in arrears
50,000
4,25,000
3,00,000
70,000
4,200
3,150
6,720
18,500
6,000
8,950
6,220
2,400
3,800
10,500
38,700
35,200
80,500
17,100
1,34,700
25,000
15,700
3,200
5,000
You are required to prepare Income statement and Balance sheet for the year ended 31/03/2013. The
following further information is also given for adjustments:
a. Closing stock as on 31/03/2013 Rs. 91,500/-.
b. Provide 15% depreciation on plant and 10% on furniture respectively.
c. Outstanding liabilities were wages Rs. 5,200/-, salary Rs. 1200/- and Rent Rs. 600/-.
d. Dividend @ 5% on paid-up capital is to be provided.

2. The following is the trail balance of Deebee Ltd. as on 31/03/2013. The company has 20,000 shares of Rs.
100/- each as Registered capital.
Particulars Debit (Rs.) Credit (Rs.)
Share capital (3000 shares of Rs. 100/- each)
Calls in arrears
Reserve fund
Buildings
Fixed deposits
Wages
Machinery
Furniture
Purchases and sales
Salary
Debtors & creditors
--
16,000
--
1,80,000
--
30,000
89,000
80,000
2,10,000
60,000
2,20,000
3,00,000
--
2,50,000
--
1,00,000
--
--
--
5,25,000
--
1,50,000
B/R & B/P
Directors fees
Returns
Freight
Manufacturing expenses
Opening stock
Interim dividend
Corporate dividend tax on interim dividend
Audit fees
P&L A/C
Tools
Preliminary expenses
Debentures
Interest on debentures
Investments
Goodwill
Insurance & taxes
Printing & stationery
Cash and bank balance
61,000
20,000
15,000
10,000
5,000
65,000
21,368
3,466
15,000
--
38,000
60,000
--
14,000
2,50,000
52,000
20,000
15,000
12,000
15,61,834
90,000
--
20,000
--
--
--
--
--
--
26,834
--
--
1,00,000
--
--
--
--
--
--
15,61,834
Adjustments:
a. Directors proposed a total dividend of 25%.
b. Write off 25% of preliminary expenses and 10% of goodwill.
c. Depreciate building by 2% and furniture by 5%.
d. Transfer Rs. 60,000/- to Reserve fund.
e. Insurance prepaid Rs. 1,500/-
f. Closing stock Rs. 80,000/-
Prepare Statement of Profit and loss account and Balance sheet.

3. The following is the trail balance of Bharath company Ltd. as on 31/03/2013.
Particulars Debit (Rs.) Credit (Rs.)
Paid-up capital
Reserve fund
Provident Fund
Goodwill
Machinery
Livestock
Buildings
8% Mortgage loans(Debentures)
Debtors
Creditors
Opening Stock
B/R & B/P
Advance payment of Income Tax
Cash at bank
Purchase of Raw materials
Sales
Returns
--
--
--
15,000
25,000
5,000
37,000
--
45,000
--
46,000
4,000
4,000
11,000
88,000
--
2,400
1,00,000
17,000
3,000
--
--
--
--
30,000
--
16,000
--
5,490
--
--
--
1,83,700
1,000
Discount
Investments
Manufacturing Wages
Carriage inwards
Factory expenses
Office Salary
Office Furniture
Preliminary expenses
Bad debts
Provident fund contribution
Directors fees
Interest on debentures
Dividend on investment
P&L A/C (1/04/2012)
2,000
8,000
32,000
1,000
14,000
6,500
5,000
5,000
1,500
500
1,200
1,200
--
--
3,60,300
1,000
--
--
--
--
--
--
--
--
--
--
--
480
2,630
3,60,300
You are required to prepare Income statement and Balance sheet for the year ended 31/03/2013. The
following further information is also given for adjustments:
a. Closing stock as on 31/03/2013 Rs. 38,380/-.
b. Write off 50% of preliminary expenses.
c. Interest on Mortgage debenture is paid 6 months up to 30
th
September 2012.
d. Provide depreciation machinery @ 10%, building @ 5% and furniture @ 6%.
e. Transfer to reserve fund Rs. 2,000/-.

4. The following is the Trail balance of Reliance Co. Ltd., as on 31/03/2013:
Particulars Debit (Rs.) Credit (Rs.)
Share capital
Reserve fund
Furniture
Buildings
Wages
Salaries
Debtors
B/R
Interim dividend
Audit fees
Directors fees
Light and water
Printing & stationery
Purchases
Sales
Loos tools
P&L Appropriation A/C
Cash at bank
Forfeited share capital A/c
Calls in advance
General expenses
Goodwill
Opening stock
--
--
40,000
80,000
50,000
20,000
1,60,000
60,000
30,000
10,000
5,000
10,000
12,000
2,40,000
--
40,000
--
50,000
10,000
20,000
10,000
50,000
60,000
3,00,000
1,50,000
--
--
--
--
--
--
--
--
--
--
--
--
3,80,000
--
20,000
--
--
--
--
--
--
Investment
Machinery
Creditors
Returns
B/P
Cash in hand
Securities premium
50,000
40,000
--
20,000
--
38,000
--
11,00,000
--
--
1,80,00
10,000
20,000
--
30,000
11,00,000

Adjustments:
a. Closing stock as on 31/03/2013 Rs. 90,000/-.
b. Provide depreciation machinery @ 10% and building @ 5%.
c. Provide RDD at 5% on debtors.
d. Transfer to reserve fund Rs. 25,000/-.
e. Directors recommended dividend of 10% for the year.
f. Make provision for taxation Rs. 10,000/-.
Prepare final accounts of the company as per companys act 1956.

5. Camy Ltd. has an authorized capital of 10,000 equity shares of Rs. 10/- each and 300, 5% Preference shares
of Rs. 100/- each.
Trail balance as at 31/03/2014
Particulars Debit (Rs.) Credit (Rs.)
Equity Share capital
5% preference Share capital
Purchases & Sales
Stock as on 1/04/2012
Preference dividend up to 30/09/2012
CDT paid on Preference Dividend paid
Provision for bad debts
Interest received (TDS Rs. 300/-)
Wages
Motor vehicle expenses
Motor vehicle (cost Rs. 18,000/-)
Debtors & Creditors
Rates and insurance
Land (cost)
P&L A/C (1/04/2012)
Directors fees
Bad debts
Investments
Salaries
Balance at bank
--
--
1,10,670
29,145
500
81
--
--
16,328
5,895
9,240
28,370
1,217
88,000
--
3,000
770
5,800
7,890
8,094
3,15,000
1,00,000
20,000
1,60,800
--
--
--
600
1,000
--
--
--
25,650
--
--
6,950
--
--
--
--
--
3,15,000
Other particulars:
1. Stock on 31/03/2014 Rs. 32,630/-.
2. Provision for Bad debts to be increased to Rs. 750/-.
3. A dividend of 10% on equity capital is proposed.
4. Depreciate vehicles at 20% of cost price.
5. Rs. 3,000/- to be transferred to General reserve.
6. Provide for balance of preference dividend.
7. Provide for managerial commission at 5% on profit remaining after charging such commission.
Prepare Income statement and Balance sheet.

6. Following is the trail balance of Shakti Company Ltd., on 31/03/2013:
Debit Balance Amount (Rs.) Credit Balance Amount (Rs.)
Stock (1/04/2012)
Purchases
Wages
Discount
Salaries
Rent
Sundry Expenses
Dividend paid (including CDT)
Interim dividend (including CDT)
Debtors
Machinery
Cash
Bank
Loan to an Employee
Bad debts
75,000
2,45,000
50,000
7,000
7,500
4,950
17,050
5,000
4,000
37,500
29,000
10,200
6,000
3,250
1,580
5,03,030
Sales
P&L A/c (31/03/2012)
Share capital in share of Rs. 10/- each
Sundry creditors
Reserve fund
Discount

3,50,000
15,030
1,00,000
17,500
15,500
5,000









5,03,030
Adjustments:
1. Stock on 31/03/2013 Rs. 82,000/-.
2. Depreciate machinery at 10%.
3. 6 months insurance was unexpired at Rs. 750/- PA.
4. Rent of Rs. 950/- was due.
5. Provide Reserve for doubtful debts at 5%.
6. Provide Reserve for discount on creditors at 5%.
7. Make provision for income tax to the extent of Rs. 15,000/-.
8. Proposed dividend at 10%.
9. The managing director is entitled at 10% commission on net profits before charging such commission.
Prepare final accounts from the above particulars.

7. Following is the Trail Balance of Chaitra Ltd., as at 31/03/2013
Trail balance as at 31/03/2013
Particulars Debit (Rs.) Credit (Rs.)
Equity Share capital
12% preference Share capital
Reserve fund
Buildings
10% Debentures
Plant & machinery
Purchases & Sales
Salary
Debtors & Creditors
Bills
--
--
--
5,00,000
--
2,00,000
2,50,000
60,000
2,30,000
80,000
3,00,000
2,00,000
1,50,000
--
2,00,000
--
6,00,000
--
1,75,000
90,000
Directors fees
Bad debts
Returns
Wages
Opening Stock
P&L A/C (1/04/2012)
Loose tools
Goodwill
Discount on issue of shares
Cash and bank balances
12% Investments (1/04/2012)
Interest on investments
20,000
5,000
15,000
15,000
45,000
--
60,000
80,000
20,000
33,000
2,00,000

18,13,000
--
--
20,000
--
--
60,000
--
--
--
--
--
18,000
18,13,000
Other particulars:
a. Closing Stock is valued at Rs. 1,40,000/-.
b. Outstanding wages Rs. 2,500/-.
c. Write off 10% of discount on issue of shares.
d. Debenture interest is outstanding for the whole year.
e. Write off Rs. 5,000/- further bad debts and create Reserve for doubtful debts at 5%.
f. Building and plant and machinery to be depreciated by 5% and 10% respectively.
g. Transfer Rs. 25,000/- to reserve.
h. The directors propose 15% dividend to equity shareholders.
You are required to prepare final accounts.

8. Eshwar Ltd., earned a net profit of Rs. 4,00,000/- after considering the following items:
Particulars Amount (Rs.)
Depreciation
Preliminary Expenses
Provision for taxation
MDs remuneration paid
Directors fees
Bonus paid
Profit on sale of fixed asset
(Original cost Rs. 40,000/- WDV Rs. 22,000/-)
80,000
40,000
2,20,000
60,000
20,000
30,000
30,000

9. A manager is entitled to a commission at a percentage of net profits (such commission to be charged in
arriving at the net profit)
The commission is to be allowed on the following rates:
First Rs. 10,000/- of the net profit Nil
Next Rs. 20,000/- of the net profit 10%
Next Rs. 30,000/- of the net profit 15%
Next Rs. 60,000/- of the net profit 20%
Balance of net profits 30%
The net profits before charging the managers commission is Rs. 1,45,000/-. Compute the amount of
managers commission.

10. H.P Ltd., employs a managing director who is entitled to a salary of Rs. 5,000/- PM and, in addition to a
commission of 1% of the net profits before charging such commission. The following P&L A/c is presented
by H.P Ltd., for the year ending 31/03/2008:
Particulars Amount (Rs.) Particulars Amount (Rs.)
To staff salaries & bonus
To general expenses
To repairs to building
To directors fees
To R&D expenses (cost of an
apparatus
To ex-gratia payment to an employee
To depreciation
To bad debt
To commission for breach of contract
To donations to Ramakrishna mission
To managing directors salary
To interest on debentures
To debenture trustee remuneration
To income tax
To net profit c/d
3,00,000
1,50,000
30,000
10,000
25,000

5,000
1,50,000
30,000
20,000
30,000
60,000
20,000
5,000
3,32,500
3,32,500
15,00,000
By gross profit b/d
By profit on sale of plant (cost price
Rs. 2,50,000/-, WDV Rs. 1,80,000/-)
By subsidy from government
10,00,000
1,00,000

4,00,000












15,00,000
You are required to calculate the commission payable to managing director. You may assume the depreciation
appearing in the P&L A/c has been calculated in accordance with section 350.

11. Net profits before tax and managerial remuneration Rs. 40,00,000/-
Depreciation as per books of accounts Rs. 5,00,000/-
Depreciation as per section 350 of companies act Rs. 6,00,000/-
The manager is entitled to a commission of 4% on net profit. Calculate the commission payable to the
manager if it is to be calculated on:
a. Profits before charging such commission, and
b. Profits after charging such commission.

























12. The following is the Trial Balance of Omega Limited as on 31.3.2012:
(Figures in Rs. 000)
Debit Balance Amount(Rs.) Credit Balance Amount(Rs.)
Land at cost
Plant & Machinery at cost
Trade Receivables
Inventories (31.3.12)
Bank
Adjusted Purchases
Factory Expenses
Administration Expenses
Selling Expenses
Debenture Interest
Interim Dividend Paid
220
770
96
86
20
320
60
30
30
20
18
1670
Equity capital (Shares of Rs.
10/- each)
10% Debentures
General Reserve
Profit & Loss A/c
Securities Premium
Sales
Trade Payables
Provision for Depreciation
Suspense Account
300

200
130
72
40
700
52
172
4

1670
Additional Information:
a) The authorized share capital of the company is 40,000 shares of Rs. 10 each.
b) The company on the advice of independent valuer wish to revalue the land at Rs. 3,60,000.
c) Proposed final dividend @ 10%.
d) Suspense account of Rs. 4,000 represents cash received for the sale of some of the machinery on 1.4.11.
The cost of the machinery was Rs. 10,000 and the accumulated depreciation thereon being Rs. 8,000.
e) Depreciation is to be provided on plant and machinery at 10% on cost.
You are required to prepare Omega Limiteds Balance Sheet as on 31.3.2012 and Statement of Profit and Loss
for the year ended 31.3.2012 as per Revised Schedule. Ignore previous years figures & taxation.

13. You are required to prepare financial statements from the following trial balance of Haria Chemicals Ltd.
for the year ended 31st March, 2012.
Haria Chemicals Ltd.
Trial Balance as at 31st March, 2012
Particulars Amount(Rs.) Particulars Amount(Rs.)
Stock
Furniture
Discount
Loan to Directors
Advertisement
Bad debts
Commission
Purchases
Plant and Machinery
Rentals
6,80,000
2,00,000
40,000
80,000
20,000
35,000
1,20,000
23,19,000
8,60,000
25,000
Equity Shares
Capital (Shares of Rs. 10 each)
11% Debentures
Bank loans
Bills payable
Creditors
Sales
Rent received
Transfer fees
Profit & Loss account

25,00,000
5,00,000
6,45,000
1,25,000
1,56,000
42,68,000
46,000
10,000
1,39,000
Current account
Cash
Interest on bank loans
Preliminary expenses
Fixtures
Wages
Consumables
Freehold land
Tools & Equipments
Goodwill
Debtors
Bills receivable
Dealer aids
Transit insurance
Trade expenses
Distribution freight
Debenture interest
45,000
8,000
1,16,000
10,000
3,00,000
9,00,000
84,000
15,46,000
2,45,000
2,65,000
2,87,000
1,53,000
21,000
30,000
72,000
54,000
20,000
85,35,000
Depreciation provision :
Machinery


1,46,000















85,35,000
Additional Information: Closing Stock on 31.03.2012 Rs. 8,23,000/-.


Particulars Debit (Rs.) Credit (Rs.)
Paid-up capital
Reserve fund
Provident Fund
Goodwill
Machinery
Livestock
Buildings
8% Mortgage loans(Debentures)
Debtors
Creditors
Opening Stock
B/R & B/P
Advance payment of Income Tax
Cash at bank
Purchase of Raw materials
Sales
Returns
Discount
Investments
Manufacturing Wages
Carriage inwards
Factory expenses
Office Salary
Office Furniture
Preliminary expenses
Bad debts
--
--
--
15,000
25,000
5,000
37,000
--
45,000
--
46,000
4,000
4,000
11,000
88,000
--
2,400
2,000
8,000
32,000
1,000
14,000
6,500
5,000
5,000
1,500
1,00,000
17,000
3,000
--
--
--
--
30,000
--
16,000
--
5,490
--
--
--
1,83,700
1,000
1,000
--
--
--
--
--
--
--
--
Provident fund contribution
Directors fees
Interest on debentures
Dividend on investment
P&L A/C (1/04/2012)
500
1,200
1,200
--
--
3,60,300
--
--
--
480
2,630
3,60,300