Financial Accounting 107 MMS - Sem I

34 Solutions 32 : Final Accounts

Solution to Problem 01
M/s Catharin
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 25,000 By Sales 125,000
To Purchases 75,000 (-) Sales Return 1,000 124,000
(-) Pur Returns 2,000 73,000
To Wages 3,000 By Goods withdrawn 1,000
To Carriage 2,000 By Closing Stock 34,000
103,000 159,000
To Gross Profit 56,000
159,000 159,000

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 56,000
To Salaries 6,000 By Commission 1,000
(+) Outstanding 500 6,500 By Discount Recd 1,200
To Rent & Taxes 1,000 By Interest 400
(+) Outstanding 200 1,200 (+) Receivable 500 900
To Insurance 900
To Bad Debts 400
(+) New RDD 1,200 1,600
To Discount Allowed 700
To Deprn - Bldg 200
To Deprn - Mach 1,700
12,800 59,100
To Net Profit 46,300
59,100 59,100

M/s Catharin
Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 40,000 Building 10,000
(-) Drawings 10,000 (-) Deprn 2% 200 9,800
30,000 Machinery 17,000
(-) Goods withdrawn 1,000 (-) Deprn 10% 1,700 15,300
29,000 S Debtors 24,000
(+) Net Profit 46,300 75,300 (-) New RDD 5% 1,200 22,800
Investments 10,000
Bills Payable 5,700 Cash in hand 3,300
S Creditors 14,000 Closing Stock 34,000
O/s Rent 200 Int Recble on Invts 500
O/s Salaries 500

95,700 95,700

Niranjan 107 SIMSREE

Financial Accounting 108 MMS - Sem I

Solution to Problem 02
M/s Piyusha
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 11,500 By Sales 140,000
To Wages 4,600
To Purchases 92,700
(-) Pur Returns 200 92,500
To Carriage Inward 900 By Closing Stock 24,500
109,500 164,500
To Gross Profit 55,000
164,500 164,500

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 55,000
To Salaries 7,500 By Dividend Recd 2,400
To Postage Charges 2,200
To Insurance 2,400
(-) Prepaid 1,200 1,200
To Printing & Stationery 3,600
To Office rent 6,000
(+) Outstanding 1,200 7,200
To Bad debts nil
(+) New RDD 750
750
(-) old RDD 400 350
To Deprn - Pl & Mach 1,500
To Loose Tools w/off 350
23,900 57,400
To Net Profit 33,500
57,400 57,400

M/s Piyusha
Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 45,000 Bills Receivable 3,000
(-) Drawings 6,000 S Debtors 15,000
39,000 (-) New RDD 5% 750 14,250
(+) Net Profit 33,500 72,500 Furniture & Fixtures 9,500
Loose Tools 7,000
Outstanding Rent 1,200 (-) Revaln 350 6,650
Creditors 15,000 Plant & Machinery 15,000
Bills Payable 2,000 (-) Deprn 10% 1,500 13,500
Investments 10,000
Cash in hand 8,100
Closing Stock 24,500
Prepaid Insurance 1,200

90,700 90,700

Niranjan 108 SIMSREE

Financial Accounting 109 MMS - Sem I

Solution to Problem 03
M/s Prithvi Shah
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 10,000 By Sales 61,000
To Wages 1,500 (-) Sales Return 2,000 59,000
To Fuel, Coal & Water 2,500
To Purchases 35,000 By Goods distributed 500
To Carriage Inwards 200 By Closing Stock 18,400
49,200 77,900
To Gross Profit 28,700
77,900 77,900

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 28,700
To General Expenses 1,500 By Commission 900
To Stationery 1,300 (+) Receivable 300 1,200
(-) Cl Stk of Stationery 300 1,000
To Salaries 4,000
To Bad Debts 300
(=) further B Debts 600
900
(+) New R D D 1,100
2,000
(-) Old RDD 400 1,600
To Insurance 400
To Office Rent 600
To Deprn : Building 2,000
To Deprn : Furnture 600
To Advt (goods distri) 500
12,200 29,900
To Net Profit 17,700
29,900 29,900

M/s Prithvi Shah

Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 50,000 S Debtors 22,600
(-) Drawings 5,000 (-) Further B Debts 600
45,000 22,000
(+) Net Profit 17,700 62,700 (-) New R D D 5% 1,100 20,900
Prepaid Salaries 1,200
S Creditors 20,000 Building 40,000
Bank Overdraft 2,000 (--) Deprn 5% 2,000 38,000
Outstanding Wages 1,000 Bills Receivable 1,200
Furniture 6,000
(-) Deprn 10% 600 5,400
Closing Stock 18,400
Commission Receivable 300
Stock of Stationery 300
85,700 85,700

Niranjan 109 SIMSREE

Financial Accounting 110 MMS - Sem I

Solution to Problem 04
M/s Divya Madan
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 40,000 By Sales 118,000
To Purchases 80,000
(-) Return Outwards 1,000 79,000
To Wages 8,000
To Carriage Inwards 2,000 By Closing Stock 25,000
129,000 143,000
To Gross Profit 14,000
143,000 143,000

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 14,000
To Bad Debts nil By Interest 2,000
(+) New RDD 1,500 (+) Receivable 1,500 3,500
1,500 By Disc Recd nil
(-) Old RDD 1,000 500 (+) Disc Provn New 1,100 1,100
To Salaries 8,000
To Insurance 5,000
(-) Personal LIP 2,000 3,000
To General Expenses 3,000
To Advertisement 3,000
(-) Prepaid 2,000 1,000
To Deprn : Machinery 5,000
To Deprn : Furniture 1,300
21,800 18,600
By Net Loss 3,200
21,800 21,800

M/s Divya Madan

Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 100,000 Bills Receivable 6,000
(-) Personal LIP paid 2,000 Machinery 50,000
98,000 (-) Deprn 10% 5,000 45,000
(-) Net Loss 3,200 94,800 Furniture 26,000
S Creditors 55,000 (-) Deprn 5% 1,300 24,700
(-) Disc Provn New 2% 1,100 53,900 Investments 14,000
S Debtors 30,000
(-) New RDD 5% 1,500 28,500
Prepaid Advt 2,000
Prepaid Wages 2,000
Closing Stock 25,000
Interest Receivable 1,500

148,700 148,700

Niranjan 110 SIMSREE

Financial Accounting 111 MMS - Sem I

Solution to Problem 05
M/s Shubham Traders
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 25,000 By Sales 134,100
To Purchases 48,000
To Wages 3,000 By Goods withdrawn 3,000
To Factory Expenses 28,000 By Goods distributed 1,500
To Royalties 1,800
To Carriage Inwards 1,300 By Closing Stock 18,000
107,100 156,600
To Gross Profit 49,500
156,600 156,600

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 49,500
To Carriage Outwards 1,700 By Discount 2,500
To Office Expenses 2,500
To Bad Debts 800
(+) Further B Debts 1,000
1,800
(+) New RDD 5% 2,200
4,000
(-) Old RDD 1,000 3,000
To Advertisement 3,000
(+) Goods distributed 1,500 4,500
To Insurance 1,200
(-) Prepaid 600 600
To Int on Bank Loan (o/s) 400
To Deprn : Furniture 300
To Deprn : Machinery 1,000
14,000 52,000
To Net Profit 38,000
52,000 52,000

M/s Shubham Traders

Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 40,000 Land & Buildiing 30,000
(-) Drawings 5,000 S Debtors 45,000
35,000 (-) Further B Debts 1,000
(-) Goods withdrawn 3,000 44,000
32,000 (-) New RDD 5% 2,200 41,800
(+) Net Profit 38,000 70,000 Machinery 25,000
S Creditors 45,000 (-) Deprn 1,000 24,000
Unpaid Wages 1,000 Furniture 3,000
12% Bank Loan 10,000 (-) Deprn 10% 300 2,700
O/s Int on Bank Loan 400 Cash at Bank 5,000
(10000*12/100*4/12) Cash in hand 4,300
Closing Stock 18,000
Prepaid Insurance 600
126,400 126,400

Niranjan 111 SIMSREE

Financial Accounting 112 MMS - Sem I

Solution to Problem 06
M/s Rohit Zende
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 10,000 By Sales 122,000
To Purchases 60,000 (-) Sale of old NewsPap 2,000 120,000
To Wages 7,000
(+) Outstanding 600 7,600 By Closing Stock 21,000
To Carriage 2,500
80,100 141,000
To Gross Profit 60,900
141,000 141,000

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 60,900
To Salaries 4,500
(+) Outstanding 500 5,000 By Commission 5,000
To Printing & Stationery 3,100 By Disc Recd 3,000
To Advertisement 1,000 By Sale of old newspap 2,000
To Bad Debts 2,000
(+) New RDD 800
2,800
(-) Old RDD 700 2,100
To Disc Allowed 3,400
To Deprn on Building 2,000
To Deprn on Machinery 4,000
To Int on Loan nil
(+) Outstanding 2,000 2,000
To Deprn : LH Premises 2,000
24,600 70,900
To Net Profit 46,300
70,900 70,900

M/s Rohit Zende

Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 45,000 Debtors 16,000
(-) Drawings 4,800 (-) New RDD 5% 800 15,200
40,200 Bills Receivable . 12,000
(+) Net Profit 46,300 86,500 Building 30,000
Machinery 40,000
Creditors 25,000 Cash in hand 8,400
Bank Loan 30,000 Leasehold Premises 20,000
O/s Salaries 500 (-) Deprn (1/10th) 2,000 18,000
O/s Wages 600 Closing Stock 21,000
O/s Int on Bank Loan 2,000

144,600 144,600

Niranjan 112 SIMSREE

Financial Accounting 113 MMS - Sem I

Solution to Problem 07
M/s Andrew Traders
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 10,000 By Sales 56,000
To Purchases 29,000 (-) S Return 1,500 54,500
To Carriage 1,000
To Wages 7,200 By Closing Stock 19,000
(+) Outstanding 800 8,000
48,000 73,500
To Gross Profit 25,500
73,500 73,500

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Gross Profit 25,500
To Salaries 3,500 By Int Recd 200
(+) Outstanding 500 4,000 By Disc Recd 300
To Rent 1,200
(-) Personal Exps 500 700
To Rates & Taxes 200
To Sundry Expenses 3,000
To Bad debts 800
(+) Further B Debts 1,400
2,200
(+) New RDD 5% 1,000
3,200
(-) Old RDD 1,500 1,700
To Deprn : Mach 500
To Deprn : Furn 150
10,250 26,000
To Net Profit 15,750
26,000 26,000

M/s Andrew Traders

Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 35,000 Debtors 21,400
(-) Drawings 8,000 (-) Further B Debts 1,400
27,000 20,000
(-) Personal Exps Rent 500 (-) New RDD 5% 1,000 19,000
26,500 Furniture 3,000
(+) Net Profit 15,750 42,250 (-) Deprn 5% 150 2,850
Machinery 5,000
Creditors 7,000 (-) Deprn 10% 500 4,500
O/s Salaries 500 Cash in hand 200
O/s Wages 800 Cash at Bank 5,000
Closing Stock 19,000
50,550 50,550

Niranjan 113 SIMSREE

Financial Accounting 114 MMS - Sem I

Solution to Problem 08
M/s Sunit Kulkarni
Dr Trading A/c for the year ended 31st March 2019 Cr
Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 25,000 By Sales 180,000
To Purchases 130,000 (-) Sales Returns 2,000 178,000
(-) Pur Returns 5,000 125,000
To Wages 4,000 By Goods Withdrawn 1,400
(+) Unpaid 500 4,500 By Closing Stock 23,000
154,500 202,400
To Net Profit 47,900
202,400 202,400

Dr P & L A/c for the year ended 31st March 2019 Cr

Particulars Amt ` Amt ` Particulars Amt ` Amt `
By Net Profit 47,900
To Advertisement 4,000 By Commission 500
(-) Prepaid 2,000 2,000 (+) Receivable 200 700
To Salaries 8,000
To Insurance 500
(-) Prepaid 300 200
To Postage 1,000
To Bad debts nil
(+) New RDD 1,000
1,000
(-) Old RDD 500 500
To Deprn : Furn 2,200
To Deprn : Machinery 3,000
16,900 48,600
To Net Profit 31,700
48,600 48,600

M/s Sunit Kulkarni

Balance Sheet as on 31st March 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital 31,000 S Debtors 20,000
(-) Drawings 1,600 (-) New RDD 5% 1,000 19,000
29,400 Furniture 11,000
(-) Goods Withdrawn 1,400 (-) Deprn 20% 2,200 8,800
28,000 Machinery 30,000
(+) Net Profit 31,700 59,700 (-) Deprn 10% 3,000 27,000
Prepaid Advt 2,000
Creditors 25,000 Investments 6,000
Reserve Fund 4,000 Cash in hand 900
Bills Payable 6,000 Cash at bank 8,000
Unpaid Wages 500 Closing Stock 23,000
Prepaid Insurance 300
Commission Receivable 200

95,200 95,200

Niranjan 114 SIMSREE