1. From the following balances of the ledger of Sh.

Gurdeep Singh, prepare Trading

and Profit and Loss Account and Balance Sheet :—

Dr. Balances Rs. Rs.

Stock on 30-6-2007 30,000
Delivery vans 46,200
Purchases and Sales 2,30,000 3,45,800
Returns 12,500 15,200
Commission on Purchases 1,200
Freight, octroi and carriage 26,000
Wages and Salary 10,800
Insurance Premium 820
Business premises 40,000
Sundry Debtors 26,100
Sundry Creditors 26,700
Goodwill 8,000
Patents 8,400
Coal, Gas and Power 7,600
Printing and Stationery 2,100
Postage and Telegram 710
Travelling expenses 4,250
Drawings 7,200
Depreciation 1,000
General Expenses 8,350
Capital 89,760
Investments 8,000
Interest on Investments 800
Custom Duty on imported goods 4,500
Cash in hand 2,570
Bank loan 5,200
Commission 4,600 4,400
Loan on Mortgage 30,000
Interest on Loan 3,000
B/P 2,280
B/R 4,540

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Administration expenses 3,000
Delivery vans 20,300
Discount 1,600
TOTAL 5,21,740 5,21,740

Additional Information:
1. closing stock Rs 45000
2. Out standing intrest on loan Rs 3000
4. deprication on patents Rs 20%
Q. 3 From the following balances of Sehajta Ltd. prepare Final Accounts as on 31st March,
2008 :—
Rs. Rs.
Stock on 01-4-2007 23,500 Freight In 1,100
Purchases 46,800 Freight Out 3,000
Sales 1,30,000 Rent (Factory 1/3, Office 2/3) 7,500
Direct Expenses 27,000 Legal Expenses 800
Office Expenses 5,800 Miscellaneous Receipts 500
Selling Expenses 1,200 Sundry Debtors 30,000
Returns In 6,600 Sundry Creditors 12,200
Returns Out 2,800 transportation 600
Loose Tools 7,200 Bad-Debts 4,750
Trade Marks 5,000 Rent received 4,000
Discount Cr. 2,100 Miscellenious expenses 3,900
Salaries 9,600 Bank Charges 2,800
Fixed Deposit with P.N.B. 10,000 Loan on Mortgage 20,000
Cash in Hand 1,300 Interest on Loan 2,400
Motor Vehicles 50,000
Leasehold Land 60,000
Capital 1,37,450
Life Insurance Premium 6,000
Value of Closing Stock was Rs. 36,500 on 31st March 2008.

4 From the following Trial Balance of Gurdeep Singh as at 31st December, 2007, prepare
Trading and Profit and Loss Account and Balance Sheet:

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Opening Stock 15,500 Capital 60,000
Land and Building 35,000 Loan from Mrs. Gurdeep Singh
Machinery 50,000 @9% 30,000
Furniture & Fixtures 5,000 Sundry Creditors 9,600
Purchases 1,06,000 Purchase Returns 2,100
Salaries 11,000 Sales 2,07,300
General Expenses 2,500 Discount 1,200
Rent 3,000
Postage and Telegrams 1,400
Stationery 1,300
Wages 26,000
Freight on Purchases 2,800
Carriage on Sales 4,000
Repairs 4,500
Sundry Debtors 30,000
Bad Debts 600
Cash in Hand 100
Cash at Bank 6,400
Sales Returns 5,100
3,10,200 3,10,200
The following further information was given:
(a) Wages for December, 2007 amounting to Rs. 2,100 have not yet been paid.
(b) stock on hand on 31st Dec, 2007 was Rs. 14,900
(c) A provision for doubtful debts @5% on debtors is necessary.
(d) Depreciation is to be charged as follows:
Land and Building 2%, Machinery 10% and Furniture and Fixtures 15%.
(e) The loan from Mrs. Gurdeep Singh was taken on 1 st July, 2007. Interest has not been
paid yet.
Q. 5 The following is the Trial Balance of Mr. Gyan on 30th June, 2007 :

Dr. Balances Rs. Rs.

Cash in Hand 540
Cash at bank 2,630
Purchases Account 40,675
Sales Account 98,780
Returns Inward Account 680

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Returns Outward Account 500
Wages Account 10,480
Fuel & Power Account 4,730
Carriage on Sales Account 3,200
Carriage on Purchase Account 2,040
Stock Account 5,760
Building Account 30,000
Freehold Land Account 10,000
Machinery Account 20,000
Patent Account 7,500
Salaries Account 15,000
General Exps. Account 3,000
Insurance Account 600
Drawings Account 5,245
Capital Account 71,000
Sundry Debtors Account 14,500
Sundry Creditors Account 6,300

TOTAL 1,76,580 1,76,580

Taking into account the following adjustments, Prepare Trading Account and Profit and Loss
Account and the Balance Sheet:
(a) Stock on hand on 30th June, 2007 is Rs. 6,800.
(b) Machinery is to be depreciated at the rate of 10% and patents at the rate of 20%.
(c) Salaries for the month of June 2007 amounting to Rs. 1,500 were unpaid.
(d) Insurance includes a premium of Rs. 170 on a policy expiring on 31st December 2007.
(e) Wages include a sum of Rs. 2,000 spent on the erection of a cycle shed for employees
and customers.
(f) A provision for Bad and Doubtful Debts is to be created to the extent of 5 per cent on
Sundry Debtors.

Q. 6 The following trial balance is extracted from the books of a merchant

on 31st December 2007:

PARTICULARS DR. Cr.

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 Rs. Rs.
Furniture and Fittings 640
Motor Vehicles 6,250
Buildings 7,500
Capital Account 12,500
Bad Debts 125
Provision for Bad Debts 200
Sundry Debtors and Creditors 3,800 2,500
Stock on January 1, 2007 3,460
Purchases and Sales 5,475 15,450
Bank Overdraft 2,850
Sales and Purchases Returns 200 125
Advertising 450
Interest Account 118
Commission 375
Cash 650
Taxes and Insurance 1,250
General Expenses 782
Salaries 3,300

34,000 34,000

The following adjustments are to be made:

(a) Stock in Hand on 31st December, 2007 was Rs. 3,250.
(b) Depreciate Building @5%, Furniture and Fitting @ 10% and Motor Vehicle @ 20%.
(c) Rs. 85 is due for interest on bank Overdraft.
(d) Salaries Rs. 300 and Taxes Rs. 120 are outstanding.
(e) Insurance amounting to Rs. 100 is prepaid.
(f) One-third of the commission received is in respect of work to be done next year.
(g) Write off further Rs. 100 as Bad Debts and Provision for Bad Debts is to be made equal
to 5% on Sundry Debtors.
Prepare a Trading and Profit and Loss Account for the year ending 31 st December, 2007 and a
Balance Sheet as on that date.

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Q. 7 From the following Trial Balance prepared from the books of Gurdeep on 31 st December
2007, prepare Trading and Profit and Loss Account for the year ending 31 st December, 2007 and
Balance Sheet as on that date :

Particulars Rs. P. Particulars Rs. P.

Gurdeep's drawings 10,550 Gurdeep's Capital 1,19,400
Bills Receivable 9,500 Loan at 6% p.a. 20,000
Plant and Machinery 28,800 Sales 3,56,430
Sundry debtors 62,000 Commission received 5,640
Wages (Manufacturing) 40,970 Sundry Creditors 59,630
Returns inward 2,780
Purchases 2,56,590
Rent and Taxes 5,620
Stock on 1st Jan, 2007 89,680
Salaries 11,000
Travelling expenses 1,880
Insurance 400
Cash 530
Bank 18,970
Repairs and renewals 3,370
Interest of Loan 1,000
Interest and discount 4,870
Bad debts 3,620
Fixtures and Fittings 8,970

5,61,100 5,61,100

The following adjustments are to be made:

(a) Stock-in-trade in hand on December 31, 2007 Rs. 1,28,960.
(b) Create a provision of 5% on sundry debtors.
(c) Depreciate plant and machinery by 5% p.a. For fixtures and fittings by 10% per annum.
(d) Commission not earned but received amounts to Rs. 600.

Q. 8 On 31st December, 2007 the following Trail Balance was extracted from the books of Mr.
Himmat Singh.

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 Particulars Rs. P. Particulars Rs. P.
Dr. Balances: Rates Taxes and Insurance 2,891
Drawings 3,000 Advertising 3,264
Sundry Debtors 20,100 General Expenses 3,489
Interest on Loan 300 Bills Receivable 6,882
Cash in Hand 2,050 Cr. Balances:
Stock on 1st Jan, 2007 6,839 Capital 28,000
Motor Vehicles 10,000 Sundry Creditors 10,401
Cash at Bank 3,555 Loan on Mortgage 9,500
Land & Buildings 12,000 Bad Debts Reserve 710
Bad Debts 525 Sales 1,10,243
Purchases 66,458 Purchases Returns 1,346
Sales Returns 7,821 Discounts 540
Carriage Outward 2,404 Bills Payable 2,614
Carriage Inward 2,929 Rent Received 250
Salaries 9,097

Prepare Trading and Profit and Loss Account for the year ended 31 st December, 2007 and
Balance Sheet as on that date, after making adjustments for the following matters:

1. Depreciate Land and Building at 2-1/2 % and Motor Vehicles at 20%.

2. Interest on Loan at 6% p.a. Is unpaid for six months.
3. Salaries amounting to Rs. 750 and rates amounting to Rs. 350 are outstanding.
4. Prepaid Insurance amounted to Rs. 150.
5. The provision for Bad Debts is to be maintained at 5% on Sundry Debtors.
6. Stock in hand on 31st December, 2007 was valued at Rs. 6,250.

Q. 9 From the following balances extracted from the books of Mr. Hardev Singh, prepare trading
and profit and loss account for the year ended 31.32007 and a balance sheet on that date:

Purchases 71,280 Capital account 60,000

Computer at cost Creditors 13,000
(bought on 31.3.2007) 18,380 Bills Payable 10,220
Cash at Bank 4,000 Discount 22,000
Cash in Hand 2,836 Sales 60,720

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 Furniture and fittings at cost 1,540 Returns outwards 11,432
Rent 12,540 Rent due 320
Bills receivable 6,720
Trade Charges 920
Sundry debtors 34,156
Drawings 5,200
Discount 540
Wages 1,800
Salaries 16,780
Returns Inwards 1,000
1,77,692 1,77,692

Adjustments:
(a) Stock at the end at cost Rs. 25,600
(d) Depreciation on furniture and fittings shall be provided at 10% p.a.
(e) Provide for doubtful debts at 5% on sundry debtors.
(f) Goods costing Rs. 1,500 were used by the proprietor.
(g) Salaries included Rs. 12,000 paid to sales representative
(h) Stationery charges Rs. 1,200 due on 31.3.2007.

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