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Exercises On Formation of Final Accounts: Particulars Amount Amount

The document provides financial information from the books of four different companies - Mehadia Trading Company, Agarwal Footwear Company, Gupta Furniture Company, and Johri Automobiles Ltd. For each company, balances are given for assets, liabilities, income and expenses. Additional information is also provided to help prepare a Statement of Profit and Loss and Balance Sheet for each company.

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Neelu Aggrawal
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113 views4 pages

Exercises On Formation of Final Accounts: Particulars Amount Amount

The document provides financial information from the books of four different companies - Mehadia Trading Company, Agarwal Footwear Company, Gupta Furniture Company, and Johri Automobiles Ltd. For each company, balances are given for assets, liabilities, income and expenses. Additional information is also provided to help prepare a Statement of Profit and Loss and Balance Sheet for each company.

Uploaded by

Neelu Aggrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Exercises on formation of Final Accounts

Q 1.Following are the balances as on March 31, 2016, extracted from the books of Mehadia
Trading Company which trades in multiple products. You are required to make Statement of
Profit & Loss and Balance Sheet as on date:

Particulars Amount Amount


Capital 250000
Opening Inventory – Tradable Items 60000
Trade Receivables 100000
Trade Payable 70000
Sales 600000
Purchases of Tradable Items 370000
Sales Return 20000
Purchase Return 10000
Discount Received 10000
Bank overdraft 40000
Rent Received 10000
Insurance Premium Expense 30000
Land & Building 150000
Computers & Other Machines 50000
Goodwill 50000
Office Expenses 6000
Cash at Bank 20000
Furniture 30000
Freight Inward 20000
Salaries 30000
Advertising Expenses 10000
Postage & telephone 10000
Freight Outward 34000
TOTAL 990000 990000

Additional Information:

1. Closing Inventory of Tradable items valued @ Rs 95000.


Q 2.Following are the balances as on March 31, 2012, extracted from the books of Agarwal
Footwear Company which manufactures Rubber slippers. You are required to make an Income
Statement & Balance Sheet as on date after taking into consideration the additional information
given.

Particulars Amount Amount


Cash 540
Cash at Bank 2630
Purchases 40675
Return Inwards 680
Salaries 23480
Fuel & Power 4730
Carriage on Sales 3200
Carriage on Purchases 2040
Opening Inventory 5760
Building 32000
Land 10000
Machinery 20000
Patents 7500
Office Expenses 3000
Insurance Premium Expenses 5845
Trade Receivables 14500
Sales 98780
Return outward 500
Capital 62000
Trade Payable 6300
Rent 9000
TOTAL 176580 176580

Additional Information:

1. Inventory as on March 31, 2012 is Rs 6800.


Q 3.Followings are the balances as on March 31, 2016, extracted from the books of Gupta
Furniture Company, manufacturer of steel furniture. You are required to make Statement of
Profit & Loss & Balance Sheet as on date after taking into consideration the additional
information given.

Particulars Amount Dr Amount Cr


Land & Building 25000
Plant & Machinery 14270
Furniture & Fittings 7730
Carriage Inward 4370
Salaries 26140
Sales Return 1760
Factory Fuel Expenses 1560
Bank Charges 140
Purchases 42160
Trade Receivables 39070
Office Expenses 1990
Opening Stock – Raw Material 26420
Fire Insurance Premium 490
Cash at Bank 13000
Cash in Hand 850
Sales 91230
Capital 90000
Discount Received 2000
Purchase Return 8460
Trade Payable 12170
Rent received 1090
TOTAL 204950 204950

Additional Information:

1. The Value for closing Inventory of Raw Material is Rs 29390.


Q 4. The following are the balances of Johri Automobiles Ltd, a trading company in Auto Parts,
as on March 31, 2015. Prepare Income Statement and Balance Sheet of the company.

Particulars Amount Amount


Shop Building 3072000
Godown Building 3000000
Non-Current Investment 300000
Stock Opening – Trading Items 750000
Trade Receivables 870000
Trade Mark 250000
Cash & Bank 406500
Calls in Arrears 75000
Advertising Expenses 392500
Purchases of Tradable Items 1900000
Employee Benefit Exp 979800
Administrative Expenses 68350
Other Trading Expenses 202250
Bad Debts 21100
Debenture Interest Paid 180000
Share Capital 4000000
12% Debentures 3000000
P&L Account (Past Profits) 262500
Trade Payable 770000
Sales 4150000
General Reserve 250000
Dividend received 35000
TOTAL 1246750 12467500
0

Additional Information:
a) Stock Closing – Trading Items Rs 950000.

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