Balance Sheet Problems

1. Prepare Trading, Profit and Loss, Balance Sheet of MR. D for the year ended March 2015.

Particulars Debit Credit

Capital 10,00,000
Cash at Bank 5,00,000
Purchases and Sales 3,00,000 5,00,000
Discount 2,000 3,000
Land & Building 2,00,000
Sundry Creditors 50,000
Wages 3,000
Salary 3,500
Sundry Debtors 44,500
Stock as on 1.4.14 2,00,000
Goodwill 3,00,000
Total 15,53,000 15,53,000

Adjustment: Closing Stock Rs 80,000.

2. From the following Trial balance Prepare Final Account in the books of Nithya for the year
ended 31 March 2015.

Particulars Debit Credit

Capital 7,50,000
Drawings 2,00,000
Sundry Debtors 1,50,000
Sundry creditors 1,00,000
Opening Stock 75,000
Wages 2,500
Printing and Stationary 3,000
Purchases 2,75,000
Sales 3,15,000
Return in wards 2,000
Return Outwards 3,000
Salary 5,000
Plant and Machinery 3,00,000
Bills Receivable 5,500
Cash 52,000 2,000
Commission Received
Furniture 1,00,000
Total 11,70,000 11,70,000

Adjustment: Closing Stock Rs 58,000.

Outstanding Salary Rs 2500.
Outstanding Wages Rs 1000.
3. From the following Trial Balance Prepare Trading, P& L And B/S of Mr K for the year ended
31.3.2015.

Particulars Debit Credit

Capital 2,00,000
Purchases and Sales 1,50,000 2,50,000
Return 500 1,000
Wages 3,000
Rent 5,000
Sundry Debtors 30,000
Commission 4,000
Insurance Premium 1,250
Land & Building 2,75,000
Carriage inwards 250
Total 4,60,000 4,60,000

Adjustments:
1. Closing Stock Rs 70,000
2. Outstanding Wages Rs 850
3. Rent received in advance Rs 550
4. Accrued Commission Rs 1150
5. Prepaid Insurance Premium Rs 250.

4. Prepare Trading, P&L and B/S.

Particulars Debit Credit

Capital 2,50,000
Opening Stock 5,00,000
Salary 3,000
Rent Paid 1,000
Interest Received 1,500
Purchase and Sales 1,00,000 2,00,000
Commission Received 2,000
Land & Building 1,00,000
Drawings 70,000
Plant & Machinery 1,00,000
Furniture 29,500
Total 2,73,500 2,73,500
 Adjustments:
1. Closing Stock Rs 40,000.
2. Out Standing salary Rs 500
3. Prepaid Rent Rs 750
4. Accrued commission Rs 150
5. Interest received in advance Rs 500
6. Interest on capital at 10% and Drawings at 5%
7. Depreciation of 10% on P&M and 2% on Furniture.

5. The following is the trial balance of Raja jewelers as on 31.12.2004

Particulars Dr Particulars Cr

Opening inventory 72000 Capital 500000

Purchase 225000 Sales 350000

Furniture 15000 Purchase return 1800

Motor car 30000 Ram 32000

Building 425800 Shyam 24000
Sanjay 12000 Commission 7500
Kishore 20000
Ragav 18000
Advertisement 22000
Repairs & 13000
maintenance
General expenses 16000
Insurance 7000
Cash in hand 3500
Cash at bank 6000
Salaries 30000
915300 915300

You are required to draft P&L a/c and Balance sheet as on 31.12.2004 after
Taking into a/c the following adjustments
a. Closing stock Rs. 80,000
b. Interest on capital at 6%
c. Prepaid advertisement Rs. 2000
d. Goods used for domestic purpose Rs. 1800
e. Outstanding salaries Rs. 3000
f. Depreciation on building at 5%, furniture 5%, motor car at 10%
6. The following is the trial balance of Kamal Enterprises for the year ended 31.12.2003

Particulars Dr Particulars Cr
Cash in hand 500 Sales 150300
Cash at banik 1200 Purchase returns 5000
Office furniture 6000 a/c’s payable 12000
a/c’s receivable 15000 Bills payable 8000
Commission 1200 Discount received 1000
Power & fuel 6000 Dividend received 2000
Bills receivable 3500 Rend received 3500
Plant & machinery 24000 Capital 27000
Office expenses 2000
Carriage inward 1200
Carriage outward 3500
Rent, rates & taxes 1700
Leasehold premises 25000
Wages 30000
Salaries 7000
open stock 12000
Sales return 2000
Purchases 60000
Drawings 7000
208800 208800

Adjustments:
a. Closing stock Rs. 18,000
b. Depreciation on plant & machinery at 10%
c. Salaries outstanding Rs. 1000, power &fuel outstanding Rs. 2000
d. Rs. 5000 was spend on erection of plant & machinery, but wrongly included under
wages
e. Provide for bad & doubtful debts Rs. 1500
f. Discount earned but not received Rs. 100
g. Commission due but not paid Rs. 200
h. Rent received includes Rs. 500 received in advance
7. From the particulars exacted from the books of G. traders prepare final a/c’s for the year
ended 31.3.2002

Particulars Dr Particulars Cr
Cash at bank 8,000 Capital 2,00,000
Cash in hand 2,000 Sales 5,00,000
Buildings 1,20,000 Sundry creditors 48,800
Wages 60,000 Purchase retrns 8,000
Salaries 40,000 Discount received 1,600
Rent & rates 7,200 Loans 40,000
Printing & stationary 4,800
Opening stock 32,000
Purchases 2,80,000
Insurance 3,200
Machinery 48,000
Drawings 24,000
Land 54,000
Carriage inward 3,200
Power 8,800
Sundry debtors 60,000
Bills receivable 16,000
Discount allowed 2,000
Furniture 12,000
Travelling expenses 7,200
Sales return 6,000
798400 798400

Adjustments:
a. Prepaid insurance Rs. 800
b. Deprecation on machinery at 10%, furniture at 5%
c. Interest on capital on 3%
d. O/S wages Rs. 3200, O/S salaries Rs. 2400
e. Write off bad debts Rs. 4000 and create a reserve for bad debts ar 5% on Debtors.
Also create reserve for discount on debtors and discount on creditors at 1%
f. Closing stock Rs. 40000.

8. The following trial balance is extracted from the book of a merchant on 31.12.1999

Particulars Dr Cr
Purchase returns & sales returns 200 125
Furniture & fittings 640
Motor vehicles 6250
Buildings 7500
Capital 12500
Bad debts 125
Provision for bad debt 200
Sundry debtors & creditors 3800 2500
Stock on Jan 1999 3460
 Purchase & sales 5475 15450
Advertising 450
Interest 118
Commission 375
Cash 650
Tax & insurance 1250
General expenses 782
Salaries 3300
Bank O/D 2850
34000 34000

Adjustments:
a. Stock in hand on 31.12.1999 has Rs. 3250
b. Depreciation on building at 5%, furniture & fittings at 10%, motor vehicles at
20%
c. Rs. 85 is due for interest on bank O/D
d. Salaries Rs. 300 and taxes Rs. 120 are O/S
e. Insurance amounting to Rs. 100 is prepaid
f. One third of the commission received in respect of worth to be done next year
g. Write off further Rs. 100 as bad debt and provision for bad debt is to be made
equal to 5% on sundry debtor.
9. From the particulars extracted from the books of Joyce & co. prepare final a/c’s for the
year ended 31.3.2009

Particulars Dr Cr
Opening stock 54700
Purchases 790000
Cash sales 510000
Credit sales 720000
Creditors 73400
Purchase returns 22500
Wages & salaries 92400
Debtors 74400
Sales returns 20000
Postage & telegrams 23500
Rent & taxes 31300
Income tax 39000
Commission 32000
Allowances 23000
Bad debts 17500
Drawings 42000
Furniture & fittings 375000
Factory machinery 724000
Interest on loan 40000
Insurance 27700
Travelling expenses 19300
Sundry expenses 15000
 Provision for bad & doubtful 5000
debt
Cash 73500
Capital 839400
Loan(10%) 300000
Discount 20000
2502300 2502300

Adjustments:
a. Closing stock was valued as Rs. 123000
b. Depreciate machinery at 5% p.a and furniture & fittings at 7% p.a
c. A machine for Rs. 50000 was purchased on 1stjuly 2008
d. Commission received in advance Rs. 4000
e. Wage pain in advance Rs. 15500
f. Provision for bad and doubtful debts to be maintained at 10% on sundry debtors
g. Travelling expenses amounted to Rs. 7000 was included in the purchase a/c

10. From the following particulars prepare final a/c’s for the year ended on 31st march 2005

Particulars Amount
Capital 88000
Drawings 1000
Plant & machinery 50000
Furniture &fixures 6000
Loose tools 10000
Motor car (cost Rs. 15000) 5000
Stock 1.4.98 10000
Purchase 151000
Return inwards 4000
Return outwards 2000
Sales 204000
Discount received 3000
Wages 5000
Carriage outwards 6000
Salaries 20800
General expenses & insurance 6000
Rent & taxes 7200
Postage & telegram 2000
Packing & selling expenses 4000
Sundry debtors 24000
Advertisement 1000
Sundry creditors 12000
Reserve for bad & doubtful debts 1000
Cash in hand 7000
Bank O/D 10000

Adjustments;
a. Depreciate motor car at 15% on original cost
b. Loose tools are valued at 8000
c. Stock 31st march 2005 was valued at Rs. 12400
d. Reserve for bad & doubtful debts is to be maintained at 5% on debtors
e. Maintain reserve for discount on creditors at 2%
f. Unexpired insurance is Rs. 200
g. Provide for interest on capital at 6%

11. The following balances are drawn from the books of M/S Aravind mills as on 31/12/1997.
Land 1,00,000
Building 2,00,000
Sales 3,00,000
Purchase 1,75,000
Sales Return 10,000
Purchase Return 5,000
Stock (1.1.97) 25,000
Debtors 50,000
Bank OD 15,200
Cash in Hand 5,000
Creditors 20,000
Salaries 10,000
Wages 12,000
Goodwill 15,000
General Expenses 5,000
Selling Expenses 12,000
Bad debts 1,000
Capital 2,81,000
Insurance Premium 1,200

Adjustments:
1. Closing Stock Rs 30,000
2. Provide for Depreciation on 10% building
3. Write off further bad debts Rs 1000
4. Salary yet to be paid Rs 3000
5. Insurance prepaid Rs 300.
12.From the following Trial balance prepare Balance Sheet.

Particulars Debit Credit

Capital - 3,75,000
Sundry Debtors 50,000 -
Opening stock 25,000 -
Purchase and Sales 1,00,000 2,00,000
Factory Rent 1,700 -
Salary 2500 -
Commission Received - 3,000
Interet Received - 1,200
Insurance Premium 750 -
Plant and Machinery 2,00,000 -
Bills Receivable 9,250 -
Furniture 90,000 -
Land and Building 1,00,000 -

Adjustments:

1.Stock as on 31-3-2015 Rs70,000

2. O/S factory rent and Salary Rs 300 and Rs 400 respectively.

3. Depreciation on L&B at 10%

4. Commission received in advance Rs 300.

5. Accrued interest Rs 150

6. Prepaid Insurance Rs 250

7. Fire accrued in go down, the stock destroyed worth Rs 80,000 and the insurance company
admitted to pay claim Rs 45,000.