20.

60
auble Entry
Book
PRACTICAL PROBLEMS Keepis
Following are the balances extracted from the books of Manish on 31st Mar.
31st March, 2022 iwg-isc
Capital 1,90,000 Cash at Bank
Drawings 7,000 Salaries
Plant and Machinery 1,20,000 Repairs
Delivery Vehicle 26,000 Stock on 1st April, 2021
Sundry Debtors 36,000 Rent
Sundry Creditors 26,000 Manufacturing Expenses
Purchases 20,000 BillsPayable
Sales 42,000 Bad Debts
Wages 8,000 Carriage Inwards
Prepare Trading and Profit &Loss Account and Balance Sheet as at 31st March. 20-
are made after following adjustmert
) Closing Stock was T 16,000.
(i) Depreciate Plant and Machinery @10% and Delivery Vehicle @ 15%.
(Gii) Unpaid Rent amounted to R 500.
2. Prepare Trading and Profit & Loss Account and Balance Sheet from the
followin
lowinge
year ended 31st March, 2022:
balances, relating
tota the
Capital 1,00,000 Wages
Creditors 12,000 Bank
Returns Outtward 5,000 Repairs 50000
Sales 1,64,000 Stock on 1st April, 2021
Bills Payable 5,000 Rent 1000
S00
Plant and Machinery
Sundry Debtors
40,000 Manufacturing Expenses
24,000 GeneralExpenses
2000
Drawings 10,000 Bad Debts
Purchases 1,05,000 Carriage 0
Returns Inward 3,000 Fuel and Power 2000
Additional information:
1S00
1000
(i) Closing Stock was valued at 7 14,500.
(i) Depreciate Plant and Machinery by4,000.
(ii) Write off Bad Debts T 5,000.
(iv) A sum of 400 is due for repairs.
3. Following Trial Balance has been drawn from the books of Prasad on 31st March, 2022:
Particulars Dr. ) Particulars
Machinery 40,000 Capital
Cash at Bank 10,000 Sales 90,000
Cash in Hand 5,000 Sundry Creditors 1,60.00
Wages 10,000 InterestReceived 45,00
Purchases
3,00
80,000
Stock on 1st April, 2021 60,000
Sundry Debtors 44,000
Bills Receivable 29,000
Rent 4,500
Commission 2,500
General Expenses 8,000
Salaries 5,000
2,98,000 2,98,00
 JAavnts-Hin, WithAdjustments

ANOn amao tion 500.

a r i e s w e r e4 , 5 0

Ouistandin
Deprecate Machin
Machinery
at
10%

odingwere F 5 0

vesoutstandin
iate

1,00
at
Sheet as
Rentpepaid
Hages
st
March,
2022
K80,00 000.

Account for the year ended 31st March, 2022 and Balance
ockon31st

Trading
andA
315 ht & Loss
March, 2022 is given below: Cr.()
r a5 at 31st
that
date
of
Mano
Dr.) Particulars 2,27,800

Balance 25,000 Sales 500

hal
8,000 Commission 1,000
1,50,000 ReturnsOutward
2 0 2 1

A p i l
40,000
Ist 30,000 Creditors 1.50,000

randMachieny
t o n

12,000 Capital
20,000
1,000
1,20,000
1,200
AdDebis
Rthases
Seticity Exypenses
2,400
elygphone Expenses 3,000
1,800
General
Espenses
fostage
andCourier 900

RetumIs
nward
1,500
hnsurancP
e renmium
2,500

Cash
i nH a n d
40,000 4,19,300
4,19,300
Cash
atBank

at that
and Balance Sheet as
ACcount for the year ended 31st March, 2022
Trading and Profit&Loss
Prepare
ra
into
account the following adjustments:
after
taking
date valued at R 7,000.
Stock was
g
Closing were 600 and salaries 1,400.
liabilities for wages
R Outstanding all fixed assets.
be provided @ 5% p.a. on
EDepreciation is to machine purchased for R 10,000 on 1st October, 2021.
Machinery is a
Included in Plant and
paid in advance 7 200.
Insurance premium 31st March, 2022:
balances taken from the books of
Narain on
ollowing are the
Particulars
Particulars
3,00,000 Sales 15,00,000
arain's Capital 20,000
Narain' Drawings 50,000 Sales Return
16,000
Furmnitureand Fittings 26,000 Discount (Dr)
ank Overdraft 42,000 Discount (Cr) 20,000
20,000
Geditors 1,38,000 Insurance
2,00,000 General Expenses 40,000
Business Premises
Stock on 1st April, 2021 2,20,000 Salaries 90,000
Debtors 1,80,000 Commission (Dr) 22,000
Rent from Tenants 10,000 Carriage on Purchases 18,000
Purchases 11,00,000 Bad Debts Written off 8,000
 20.62 Double Entry Book1
Additional Information:
ook Keeping-1sc
()) Closing Stock as on 31st March, 2022 at cost was 2,15,600 whereac:
its net
Value) was 7 2,00,600.
(i) Depreciate: Business Premises by 3,000 and Furniture and Fittings
tings by 2,500.
realisable vatue
inl) Makea provision of 59% on debtors for doubtful debts. tMay
Giv) Carry forward 2,000 for unexpired insurance.
(v)Outstanding salary was 15,000.
Prepare Trading and Profit & Loss Account for the year ended 31st March.
that date. 2022 and
Balan
6. Following balances are taken from the books of Niranjan. Prepare Trading and
Balance Sheet for the year ended 31st March, 2022:
Sheet a
Particulars Particulars
8LOss ACCOUnt a
Capital 1,20,000 Drawings
Opening Stock 45,000 Plant and Machinery
Furniture 1,500 Purchases
Sales 4,35,000 Insurance
Purchases Return 4,000 Sales Return
Rent 5,000 General Expenses
Salaries 24,000 Wages 700
Bad Debts 1,000 6% Investments 2,000
Sundry Debtors 40,000 Sundry Creditors 4000
Bills Payable 800 Cash SO00
19 080
Advertisement Expenses 6,000 Miscellaneous Receipts
Patents 4,800
1,200
Adjustments:
Ci) Closing Stock 75,000.
i) Depreciate Machinery by 109% and Furniture by 20%.
Gii) Wages T5,000 and salaries 1,200 are outstanding.
(iv) Write off 5,000 further Bad Debts and create 5% Provision for
as
Doubtful Debts Al
provision for discount on Debtors @ 2%.
(v) Investments were made on 1st July, 2021 and no interest has been received so far.
7. Following balances extracted from the books
were
of Vijay on 31st March, 2022:
Particulars
Particulars
Capital 2,45,000 Loan
78,800
Drawings 20,000 Sales
General Expenses 6,53.600
47,400 Purchases 4,70,000
Building 1,10,000 Motor Car 20.00
Machinery 93,400 Provision for Doubtful Debts 9,00
Stock on 1st April, 2021
1,62,000 Commission (Cr) 13,200
Insurance 13,150 Motor Car Expenses 18.00
Wages 72,000 Bills Payable 38,500
Debtors 62,800 Cash B00

Creditors 3,00
Bad Debts
25,000| Bank Overdraft 1,050
5,500 Charity
 ts-ithAdjustn tments
20.63
for t
pareTradingandP .
and
Profit &
t
Loss Account

following adjustment
for the year ended 31st March, 2022 andBalk
Balance Sheet as at that
giving effect
to

drteater
sÍing
March,
March,
0 2 2 was
2022
2 valued at 2,30,000.
31st
31st3
Bad Deb ebts and maintain the Provision
tockas
kas
on
on
1,8 1,800
as
for Doubtful Debts at 5%.
10%.
at
f u r t h e r

DepreciateMachinen
Wieoff
achinery

a
rite

outstana
interest on loan.
rovide7 , 0 0 0a s

has heen
been extracted from the books of Sunder on 31st March, 2022:
Balance

Trial
ing
Dr.) Cr.()
*e********""*****************u

*************************************4 7,740
B a n k

at
and
************************0
****************""****************
*
******"********************
3,00,000
**

Hand

in
*********************************************************s* 12,600
*******************"********************* *es e
3,720
Dpawrys
BEREeiable ********""******************************************** * 65,160
LandandBuiadng * sseaee**********su
10,240 **

Knmire
**********"*****************************

***********"******
93,770 **

7,920
Nges
kcountAllowed
************************************************************** 5,970
kcount Received

sa**ute*osesao**********************"******************** nesene*s 30,000

* * * * * * * * * s s s s a s s e e s s s a s s s s s s s * * * * * * *

210
S e nCkh a r g e s

. esssssessesn************************************** i ww.oeees 2,760

BedDebts **************************************************s ********* ***** 1,31,550 **

sindy
Debtors

*******
* ******** *"**** ** **"***"*****************************
20,100
ohe
Salaries
********************"********************************************************* 3,98,160
Pchases
2021
1,20,450
1stApril,
on
Sock 3,750 **

SalesReturn
*****sssss*********************************************h*sssss*************************** 10,360 **

Cariage
Invwards
15,360
GeneralExpenses

Pantand Machiery
43,280
**************s"****"*****************"*"******************************************
2,910
PurchasesReturn
****s*sss**sssstssssssssssb**s*sstsst*sssanssss*stasses*s*ssssssu************* *****************
** 5,63,010
Sales
***************seeee************************************************************************************* 1,410
nsurance
Povision for Doubtful Debts ** 9.300
37,350
SundryCreditors *******s********4d******************************************""ss *****"************
**

Total 9,48,540 9,48,540

at that
PrepareTrading and Profit & Loss Account for the year ended 31st March, 2022 and Balance Sheet
as

date after giving effect to the following

adjustments:
e Closing Stock on 31st March, 2022 was7 1,27410.
0) Depreciate Plant and Machinery@ 10% and Furniture @59%.

Raise the Provision for Doubtful Debts to R15,000.

9 Ihaurance includes annual premium ofR720 on a policy which willexpire on 30th September, 2022.
2021 and is subject todepreciation
E S inciudes a computercosting 6,000 purchased on 1stJuly,
@10% p.a.
20.64 Double Entry Book
S. Following is the Trial Balance of
Particulars
Capital
Bharat

*****+****************

****************************
on 31st March, 2022:

*****************************

***************** *
*******s*************
************** Dr.R)
Keepinng-g-IssC
Keepi
Plant and Machinery
Furniture and Fittings * * *
********
*
*****+*****************

**
***
* * * * * * * * * * * * * * * * * * * * u * s s
**
***
******i.
*"* ***°
50.000
Stock on 1st April, 2021
* * * * * * * * * * * * * * * * * * * * * * * *

*****************************************************
* * * * * * * * * * * * * * * * * * * * * * * * * * n

***********
**********
2600
48,
Accrued Commission
Sundry Debtors
*****r************************** *** ***********"

**************"* 12,000 |
Cash in Hand ***********
AS700
Cash at Bank ***************************** ***********
*********************** 400
Wages * ** ********* 6500
Salaries ******** *** *******************************************ssssag.********** 1,50,000
Purchases *******************
vete* ******************** ***************es4esan.
******* 14.000
Sales ... .soreanueo sueevosw************************************************s,. 2,13,500
**

Bills Receivable ***

Bills Payable ***************************** *****

7,200 AA
Sundry Creditors * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
******

*************

Commission T************* ***** ****************

*

Returns Inward ssss*sses************************ **

9,300 12,09
Provision for Doubtful Debts ************************************* ** *************se sessees

*
***

Drawings ..-nnnseseeessseses********** nmanesnsee**eees*a

** *a****************.***es e
2500
7,000
Returns Outward * s * * a * s * e s * + * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Rent ssesssrere* mss************************* ********"*******"**********************

6,000 S500
Factory Power
"

***********************************************9**
*************
*******************s
***************.s

800
Insurance ********************* *****s******************
*****°°***P****
6,300
General Expenses * * * * * * * * * * * * * * * * * * *

*******

1,000
Bad Debts *****e*******.********e*********************
2,500
Discount *** **** ** ****************
*****

6,500
Total
3,700
5,89,300 S,8930
Following adjustments are to be made:
) Stock on 31st March, 2022 at cost was 52000 whereas its net realisable value (Market Value) was 570
(b) Three months factory power bill due but not paid R300.
(c)5% depreciation to be written off on furniture.
(d) Write offfurther Bad Debts 700.
(e)Provision for Doubtful Debts to be increased to R 3.000 and Provision for Discount on Debtors e2
to be made.
(f) During the year, machinery was purchased for R 20,000 but it was debited to the Purchases Account

You are required to prepareTrading Account, Profit &Loss Account and Balance Sheet.
pddcms- With Adjustments

TrialBa alance of Shubham, prepare final

20.65

following accounts for the year ended 31st March, z044

t h a t date:
he a5 at
r o mt h

Sheet
ace

Dr.Balance Cr. Balance

**************************************
* **************

50,000
Zndanabiding ......assenneo ************************ eessndeses4ssesteesnts

adhases(AGusted s ******************************
2,07,500 **

********
************** eeess
45,000
a*sea***********************
Rasig
Hoc s********************************************* e
**
1,500
etunsnwad ******"***************************
*******************************************************************

43,500 **

******"*********************
***********************************************************|

es
39,000
Snes *********************************************************************** 15,400
ofie
&penses
*********s********************************************************| 1,200
Cariage
Inwards
******** *****************
CarmiageOutwards
******************************s ss sse 2,000
*******
********************************************************************s so 750
Dbcoun
a tl l o w e d

hscountreceived
****************************************************************** 1,200
aaaASS6sss#asos **s*****************************************************************
1,200
************ ***********"****************
3,85,000
& eD
d e b t s

**** ****

Soes
i***********************"*********
************************************************************
1,15,000
CapiaAl ccount

1st oOct,
1st 2021 @18% p.a,).
on
(taken o n
25,000
Loan
an A/c (taken
Alc ********************************************************
gbhashs ************* s**************************************************s s
1,500
lnsurance

Commission
****************** *** ** *"*******"***************** ** 1,500
P a na
t n dM a c h i n e r y s******************************s**stsstsat********************************************* 50,000 *

urniturea n dF i x t u r e s
ss e*********s**s*atsss***************************sna************************************
20,000 *

BIS
Heceivable
s s ******************************************************************************
20,000 *

Sundty
Debtors
sss ************************************************************************************
40,000
SundtyCreditors
*sss0*4 ************************************************** *******************

25,000
CshatBank 16,000
Ofhice Equipments 12,000
BilsPayable *********************"*****"**** ********************************************************** 12,350
Epenses Payable *************************************************"*********************************************** *
3,300
Total 5,68,350 5,68,350
The following adjustments be taken care of
0) Depreciate: Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20%
and Furniture and Fixtures @ 15%.
(i) Create Provision for Doubtful Debts at 2% on Sundry Debtors.
(i) Insurance premium includes 250 paid in advance.
(v) Provide salary to Shubham 15,000 p.a.
Outstanding Salaries 11,500.
10% of the net profit is to be transferred to General Reserve.
 20.66 Double Entry Book
11. The following

Heads of Accounts
balances have been extracted
from the books of Kanwar as on 31st Keeping-ISC
March, 2022
Dr.
******************************************************e*********************************s**s*
Cash at Bank
Cash in Hand ****************************************************************************s4 2,630 Ct.
Purchases
****** ************************************************** *****************asse.ssaa. ******
S40
Sales Return
*********************e**********************e************************************as
a*es***ss***************** ************
40,675
*********************************************** ******* ********i***ss
680
Wages 8,480
********4**

***********
Power and Electricity
**************
**

4,730
* * * e * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

s****ssseease************************************* ***********************os*s**assas

Bad Debts 210

**************************** ***************************************esse.

Provision for Doubtful Debts

********************************************************************asssessese

3,200
*************

Carriage on Sales

2,040
************************************ ******** *********"**************ss

Carriage on Purchases
*************************************************************************************
* * * * * * * * * * * * * * *

Stock (1st April, 2021) 5,760

42,000
areoss ************************************* ***********************asas

Building
20,000
* * * * * * * * * * * * * * * * * * *

*********************************e***************

Machinery
7,500
as4***********************************a*******"****************************#s seessee

Patents

25,000
*******a**********************************"*************************************ssose

Salaries
20,000
************************s4 *****

Office and Administration Expenses

* * * *

**************************
*****

**

2,790
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * s 4 s e s s s s e a e

* * * * e * * * * * e

General Expenses
**************************

**

Insurance
* * * * * * * * * * * * * * * * * * * * * * * * * * * *
eseae**esae**************7******** 9******

600
Drawings
* * * * * * * * * * * * * * * * * * *

5,245
Sundry Debtors
********************************e***************e**********°*********************a sssssssee

14,500 **

****
* * *
* * *
* *
*******s*
* * 7 * * * * * * * * *

Sales
*********

*********************

************************************************************************************ es
98,440
Purchases Return
S00
*************************************************** ****'** *************************s

Capital 92,000
*************e**s**

Sundry Creditors ************************** ***

***P************e****************
**

6300
************************* **********B******a******************************** 4**a** ees *

Interest 9,000
Total 2,06,580 2,06580

The following adjustments to be made:

(a) The Closing Stock is valued at 6,800 against the Net Realisable Value (Market Value) of T8,000.

(b) Machinery is to be depreciated at 109% and Patents at 20%.

(c)Salaries for the month of March, 2022 amounting to 1,500 were unpaid.
(d) Insurance includes an annual premium of 170 on a policy expiring on 30th September, 2022.

e) Wite off F 500 as Bad Debts and create a Provision for Doubtful Debts at 59% on Sundry Debtos

(f) Interest Receivable 1,000.

You are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 an

Balance Sheet as at that date.

 deouis-hi With Adjustments

or
o fShyam for the year ended 31 st
20.67

6alance March, 2022 is

given below
o f

olAccouis
h e
Tmar

* * * **************************sae
Dr. ) Cr.)

**** a ************************
******************************************************************
64,000
7,50,000
******************************s
as********************************s ss

************
6,25,000
Mrdhney ****** *******"** *********************************s

********************************* 65,0
******************************** *s *******************
3,80,000
****************************
***************************"************************s*******e**
2,50,000
Ceulios *********************************
****************"******************
**************************************** 15,45,000
********** ********************e****tstsnen. ****
12,500
Archase
Retun
********** as4na*ses as*******s*********************************************************

12,500 *

ubtfulD e b t s *******************************************s**********s s s 20,000

ovisonf oD
r ou

******

*************************************************** ss sss 3,46,000

p e n i n g
S t o c *

*********"***********************************************s ****** 2,85,000

B nO
k verda

************ ****************************************************
12,50,000
pia

Rnthases
******************************************************
5,47,500
********************"********"******************************i ssn n 20,000
oes
Heturn

* * * * * * * * * * * * * * * *

Advertisement
******************************************************************** 45,000
m***************************************s***ssssspnta********
11,800
lerest
ss ***********************************************************************

Commission
37,500
1,25,000
InsUrance

GeneralExpenses
********************************"***s*ss***sssssess************ *********** 78,200
a *****************s**stets*****sstassssassssss****sssssss***********sea* *** 3,30,000 **

Salary
34,00,000 34,00,000
Total

taken into account:

Adjustments to be
Closing Stock is valued at 7 3,25,000 against its purchase cost of 3,35,000.

)Interest of 8,500 is due on bank overdraft.

() Depreciation on building is to be provided e 5%,furniture@10% and machinery @20%.

(iv) Salary outstanding is 7 30,000 and tax outstanding is 12,000.

() Prepaid insurance is 10,000 and one-third of commission has been received in advance.

(vi) Purchase include furniture of 10,000.

vi) Remaining debtors are good.
epare Trading and Profit & Loss Account for the year ended 31st March, 2022 and a Balance Sheet as on

that date.
 ouble
20.68 Entry Book Keeping-
ach on
13. Following Trial Balance has been extracted from the books of Santosh on 31et 31st March, 2022:
Particulars
Debit
Balances
sa nres
* * * * * * + * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

*******************************

Drawings
Plant and Machinery
*****************************
s********************************.
20,000
Furniture and Fixtures
***********************a************************************************** ******
*******
* ** * * * * *
10,00,.000
Capital A/c
********************************************************************** ess
***

as******** 1,20,000
a s s e e a s e ******e***********************************************s

***************************"** . . . .

n
Sales
* ***********************************************
as*s*****************************
********************s4.
e
Loose Tools
Goodwill ******************************* 2,00,000
Opening Stock
esses+******s********************e* ************************
*****************aoos 1,00.000
Returns Outward
*************************************** ********** ****************se
2,00,000
Discount
***************************************************** ******************* ****

*************************************a******************************sssenes
*******************
Purchases
Returns Inward
*******************************************************************************
********************
21,20,000
*********************************************"********************s* * ee...aa....
80,000
Wages 10,00,000
Sundry Creditors *** ****** **** ********************************** ********************

Provision for Doubtful Debts

********************
********* ***********
*************************""****
*i

**************************************************************************s***
Carriage Inwards 1,20,000
Salaries 4,16,000
************************"***"*********** **********************s*****sse

General Expenses and Insurance 7,20,000

***********************************************************************ssso*****e*ssssne

Rent 4saess****e***************************** *** ********* ********

1,44,000
Postage aas*
4****************************** * **** ************************* *
40,000
Sundry Debtors **************************************************************""***************** *
5,60,000
Barun *************************************************e*******************************************

20,000 **

Cash and Bank Balances ***************************** ****"********"***

**** *********************

1,40,000 **

Total 70,00,000 0,00,000

Following additional information is available:

(a) Stock on 31st March, 2022 was 3,08,000.
(b) Depreciation is to be charged on Plant and Machinery @5% and Furniture and Fixtures @6%. loe
Tools are revalued at 1,60,000.
(c) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(d) Remuneration of 20,000 paid to Barun, a temporary employee, stands debited to his personal acount

and it is to be corrected.
(e) Unexpired insurance was 4,000.
You are to prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 ana bae

Sheet as at that date.

WAOn-hi s -W i t hA d j u s t m e n t s

Balance of Karman on 31st March, 2022

20.69

Tria

the

Dr.Balances Cr.Balances
folowing
I S

********************************************************** 8,00,000
*********"****************** ssssaeem.
*********** ****************
60,000
75,000
*******"**"**************** ***************t***************************"

wrgs
ytock 4 s*****"*****************************************s****************
15,95,000
25,000
*************************************s
**************************************************************
*"

hases
htonPurchases
February
y,22022).. 4*******************************"****************
*********************************
009s 66,000 **

s1months. hsup
to
23,10,000

1,40,000
**************************ssset****** ******************************************************
12,000
ges
a n dCouier

18,000 **

n t i n ga n dStationery

Mscellaneous
Expenses
30,000
3,00,000

Ptors
1,00,000
Vestments **************************************

*********** *****.
15,000
kcount Received

** ss*s********"""*********************"****************************** 2,50,000

*** 15,000
R i d D e b t s

ubtful Deb
Debts *** ***************"*******"**************"*************************************** ** 8,000
D o u b t f u l

for
Prouision ***** ***********************************************************ssessssa*********sss***sssssssus 3,00,000 ***

Guilding 5,00,000
Mechinery
* * * * * * * * * * * * * * * * * * * * * * * " * * * * * * * * * * *****"*** 40,000
Funiture

CommissiononSales
esssanssnnn*****************sstssssessssssssss**sssssssssassssssuestns**ssssusssss*ssssassssns* 45,000

*s *********st***sssessss*********************************************************
*** 12,000
h t e r e s to n I n v e s t m e n t s

24,000
to 31st July, 2022)
e n *********** a*asessste********************e*****************

nsuance (up
*****************s***********"******""*********************************************************
1,50,000
Bank Balance
34,45,000 34,45,000
Total

Adjustments:

(0 Closing StockT 2,25,000.

1st October, 2021 was shown as Purchases. Freight paid on the
Gi) Machinery of 45,000 purchased
on

Purchases.
Machinery was5,000, which is included in Freight
on

Gi) Commission is payable at 24% on sales.

credited to Sales Account.
(iv) Investments were sold at 10% profit, but the proceeds was
for Doubtful Debts at 59% of Debtors.
((i) Write offurther Bad Debts 10,000 and maintain Provision
Depreciate Building by 249% p.a. and Machinery and Furniture at 10% p.a.

Sheet at
ended 31st March, 2022 and Balance
as

Frepare Trading and Profit &Loss Account for the year

that date.
20.70 uble Entry
Book
Keepi
Keepi
e ping-SC
Profit
of Pawan, prepare Trading,
&
15. From the following Trial Balance LOss
Balance Sheet
as on that
date: Account for
31st March, 2022 and a the
Heads of Accounts
year
Drawings
****************
s 4 * * * * * * * * * * * * * * * *

******************* Dr.R
Capital
**** * ******

**
***********************
* * * * * * * * * * * * * * * * *
***"

** ***********
*************se

**********
15,000
Plant and Machinery **** **
**** **

Debtors
***************"********* ** T*****************s *sae

s*************s 205,000
Creditors
************************* ****** *****

****se*****************************
**********************
******************** 50.000
**

Returns Inward ***************************

Returns Outward
* * * * * * * * * * * * * * * * * * * *

s*************************
**
8,000
**

Discount Allowed
* * + * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * * * * * * * * * * * * * *

*************as
7, 000
Discount Received
**

Commission ****************e*********

Interest on Bank Loan ***********************ass 15,000

Furniture
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
****** ***********a******seso 12,000
Provision for Doubtful Debts ****************************************

*****
************ 55,000
**

**"*****

***s**********
Wages
***********************************

13 000
Salaries ******a*********************
*************
50,000
Advertisement Expenses
***"*******************************ss****
*******************
45,000
15,000
Rent and Taxes ****** ***************"
13,000
Purchases
********************************************.********s*** *

*****
2,60,000
Sales *** ************************9
**

Stock on 1st April, 2021 ***********

s***************** *******
70,000 400 000
Carriage Inwards * ************a****
***********
5,000
***

Land and Building ********* ****

*********************"

98,000
Cash in Hand *****aseeswopms*********
****

*** *****

8,000
Cash at Bank *** ************

20,000
10% Bank Loan as on 1st April, 2021 * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

***

150,0
Total 9,51,000 9,51,00
Adjustments:
) The cost of stock on 31st March, 2022 was 37,000. However, its market value was T 35,000

(Gi) Wages outstanding were 6,000 and salaries outstanding were 5,000 on 31st March, 2022.

(ii) Depreciate: Land and Building@ 2%%, Plant and Machinery@ 10% p.a. and Furniture @159%pa.

(iv) Amount of Purchases includes purchase of machinery for 10,000 on 1st October, 2021.

(v) Debtors include bad debts ofT 2,000. Maintain a provision for doubtful debts @ 10% on Debtors

(vi) One-third of advertisement expenses are to be written off.

rimal Accounts-With Adjustments
20.71

a1ct March, 2022 the following Trial Balance was extracted from the books of Shyam:
On31st
Particulars Dr.( Particulars Cr.(
Dawings 18,000 Sundry Creditors 40,000
Machinery 1,20,000 Sales 42,000
funiure 26,000 Interest 13,500
SundryDebtors

36,000 Commission 17,000

urchases 20,000 Capital 2,10,000
Wages
8,000
CashatBank 26,000

Salary
8,000

Hepairs
1,900

OpeningStock 16,000

Rent 4,500

Miscellaneous Expenses 11,500

Bad Debts 5,000

Cariage Inwards 1,600

Shiv Mohan 20,000

3,22,500 3,22,500

Prepare Trading and Profit & Loss Account for the year ending 31st March, 2022 and Balance Sheet as on
that date after taking into account the following adjustments:

(0 Closing Stock was valued at 16,000 (At cost). Its Net Realisable Value (Market Value) was determined
at 7 20,000.

() Depreciation is to be provided on machinery @10% and furniture @ 15%.

(ii) 1,500 are due for wages.

iv) Prepaid rent 1,500.

() Accrued interest 1,500.

(vi Commission Received in Advance 2,000.

vi) Further Bad DebtsR 2,000.

wi) Provide Manager's Commission at 10% on net profit before charging such commision.

0) Remuneration of T 20,000 paid to Shiv Mohan, a temporary employee, stands debited to his Personal

Account and it is to be corrected.

 20.72 Double Entry
Book
17. Following is the Trial Balance of Bansi as on 31st March,
Particulars
Sundry Creditors ********
**********************
2022. You are

******************.
***************
*****
required to
Keepimg-1sC
Keeni..
prepare
Dr. R) FiFinmala Ac.
Ataoums
Sundry Debtors *******
***** ********

Capital A/c **** ***

*******

******************* 1,45,000
Drawings * * * * e * * * * * * * * * * * *

*****************

Insurance **************************
$2,450
General Expenses ******* ** ee*as************************* ***.
6,000
Salaries ****** *********************************seses.
30,000
Patents sses* ss**********************************
1,50,000
75,000
Machinery e****ese** **********************************************n*

2,00.000
***

Freehold Land *aa***********e*****4***********************************************

*************s**
ees.

1,00.000
Building
* * * s s * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * s *

3,00,000
Stock on 1st April, 2021 *********************************************************************. *°°*************
**

57,600
Carriage on Purchases a****** *********************************** ***********************
20,400
Carriage on Sales * * * * * * * * * * * * * * * * * * * 9 * * * * * * * * * * * * * * * * * * * * " * * *

********
32,000
Fuel and Power * *******a************e***************** ****** ************* ************sesean.

47,300
Wages ****************************
**** ******************
1,04,800
Returns Outward *************e****** ****
"***

5000
Returns Inward ******************* * * * *
***************

6,800 **

Sales * * * * * * * * * * * * * * * * * * * * * * * * * * * s * * * * *
* *************
987 300
Purchases *************** ***************

4,06,750
Cash at Bank ***************************** **** *
26,300
Cash in Hand *******n orssusoss
5,400 *

Total 17,65,800 17,65,800

Following adjustments are to be made:

(a) Stock on 31st March, 2022 was valued at T 68,000.

(b) Provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors.

(c) Depreciate Machinery by 10%% and Patents by 20%.

(d) Wages include a sum of 20,000 spent on the erection of a cycle shed for employees a tors.
atdeeos-h W i t h Adjustments
20.73

rofit& Loss Account for the year ended 31st March, 2022 and Balance Sheet as at that
Arepare
Taainga

ial Balance:
thefollowing Trial
d a t e
r o mt h e

Dr.() Cr.(
*************************************** s e**** *
1,00,000
n
*******************************
****************************************** *** ***
15,000 **

ia
**************"************************** s ************
**
20,000
***"

nkloan ********************************************************************** 1,20,000 **

UnasEs ************************************ sss*u**e4 1,50,000

*****
*****
********************************************** s 10,000
Ses
Hetun .. nn*************************************************u nn
20,000
AUcthases
Hetum

gstablishment
Expenses **************************************************************************** 22,000

aresandinsurance 5,000
************************************** n
************************************* 5,000
d D e b t s

Doubtful
Debts **************************"**tsss***************** ************ 7,000
for
Povision 50,000
Debtors
**s****************************************************s************** ms 20,000
C e d t o r s

**************"*******"******************************* s 5,000
Commission
***** ********************"*************************
40,000
30,000
V e p o s i t s

***

o p e n i nS
g tock

************************************** 14,000
Diawings
usa ******************************************************************"**************** 6,000
funiture

****************************ssssatsss**********s*ssssebsn************************************ 32,000
B i l sH e c e i v a b l e

**********************************************************************************"****** ** 25,000
BilsPayable

IhputCGST
10,000
inputSGST
10,000
*********s********"************ssbessssssesssnanas************************ *****************
8,000
Quaput CGST

OutputSGST s**************************************** ************** *******

8,000
6,000
Output I6ST *** **************************************************************************eussassssssasassasu"

3,69,000 3,69,000
Total

Adjustments:
0) SalariesT1,000 and Taxes 2,000 are outstanding but Insurance 500 is prepaid.

6) Commission 7 1,000 received in advance for the next yea.

(m) Interest 72,100 is to be received on Deposits and Interest on Bank Loan 3,000 is to be paid.

(iv) Provision for Doubtful Debts to be maintained at 10,000.

v) Depreciate Furniture by 10%.

vi)Stock on 31st March, 2022 is 45,000.

20.72 Double Entry
17. Following is the rial Balance of Bansi as on 31st March, 2022. You
ou are
ook Keeping-1se
required to
Particulars prepare final
Sundry Creditors e * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

*********
s********** Dr. Are
Sundry Debtors *sass************* *****"******************* 04

Capital A/c ********************************

145 000
**

Drawings * * * * * e e e s * * * * * * * * * * * * * * * s s s * g s * s * s s s s e p e * a * * * * s s t R * * * * * * s a n n n .

Insurance ********************* ********************** ***********

**************s*************
0
52 450
General Expenses *********************** *************

************************es
*********1

************** ss
6,.000
Salaries ******************s**** * * * * * * * * * * * * * * * * * * * * * * * * " * * * * * * * * * * * * * * * * * * * * * * * * * * .

********
30,000
Patents s*********** *** ************sssass 150,000
Machinery *********************s****sedss*************"****"******************. s.
75.000
Freehold Land * eresssssessa******** ******ssssa*ssesesaasasasse*******se*sssssannss
2,00.000
Building ********ss*a******sass*saassneseaphgseea***a s e a *********
*************************** **********
***
1,00,000
Stock on 1st April, 2021 ***************************************************
senens***********************************
3,00,000
Carriage on Purchases *********************************************************************** sssesses..s....
57,500
Cariage on Sales *************************s*****ess*********************
ssassssesstssasst****************
20,400 **

Fuel and Power

****************
32,000
47 300
Wages 9999*********************" ******************************"s** ********

Returns Outward
1,04,800
s e************************************* ***********************ss*essesessa

Returns Inward 4s na**********************ibeses*********"**"****************************** ssss S00

Sales
6,800

Purchases 9,87 300

*************************************"***************"************************ss ae
Cash at Bank
4,06,750
26,300
Cash in Hand
* ******"**********************************************************************************

Total 5,400
17,65,800 1765,800
Following adjustments are to be made:
(a) Stock on 31st March, 2022 was
valued at 7 68,000.
(b) Provision for Doubtful Debts is to be created to the extent of 5% on
Sundry Debtors.
() Depreciate Machinery by 10% and Patents
by 20%.
d) Wages include a sum of R 20,000 spent on the
erection of a cycle shed for
employees and visioi
(e) Salaries for the month of
March, 2022 amounted to 15,000 were
unpaid.
() Insurance includes a
premium of T 1,700 on a policy expiring on 30th
September, 2022
 -With Adjustments
20.73

rofit &Loss Accountfor the year ended 31st March, 2022 and Balance Sheet as atthat
and
Pr
Trading

followingTrial Balance:
folou
pare
t h e

rom
Dr.) Cr.R)
date
************** 1,00,000
Akars ***** ***
******************************************ss

****************""********************* s
es

s
*

15,000
*************** ***************

*********************s*****s
20,000
Cash
s *********** ***"****************************ss ss **** 1,20,000 **

Biank
Loa

1,50,000
ANNases ************** ****** ****"********************
******
*

********************* **************************************** ***** 10,000 **

Saes

S eRetun
s *******"********************************************************
20,000
B r t h a s eh
s eturn

gtablishment
Expenses
************** ************* ****"************************ * **
22,000
* * ********** ************"***************************************** 5,000
Tpres
and
insUance
******* ** *** ***************************************************** 5,000
BedDebts nforDoubtfulD e b t s
******** *** ****************************************** ******* **
7,000
Povso **************************"********************************* n 50,000
Debtors *********"******************""******************************** us
20,000
Cediors
********* ** ********************s*sssass************************
5,000
Commission
**** *ss**********************************************ssssbhns************t*ses 40,000
Deposits
**** *sssasanasaa***ssassppsns*sassasusssss*ssssensesss********u ssssssesosss 30,000
pening
Stoc

**** *******"**********************************************"****************** 14,000

Drawings

*ssessen********************************************s mnu 6,000

Funiture

32,000
B i l sH e c e i v a b l e

ousssussesesnesuussassasasaasssussasnssssnsesesseaososensos
25,000
Blis
Payable

10,000
hnputC G S T

10,000
aput
SGST 8,000
OutputCGST
ussssssseasen* *********************** *******************sn*

neenenesneusssssseesae nsussssseessssssttastsose a***********

8,000
QutputSGST
6,000
Output 1GST
3,69,000
Total
3,69,000

Adjustments:

(SalariesT1,000 and Taxes 2,000 are outstanding but Insurance

500 is prepaid.
Gi) Commission 1,000 received in advance for the next year.

Bank Loan 3,000 is to be paid.

Interest 72,100 is to be received on Deposits and Interest
on
(i)
(v) Provision for Doubtful Debts to be maintained at 10,000.

Depreciate Furniture by 10%.

() Stock on 31st March, 2022 is 7 45,000.
y A fire occurred on 1st April, 2022 destroying goods costingR 10,000.
20.74 Doub
Entry Book
19. TheTrial Balance ofTej as on 31st March, 2022 was as follows: Keepin
Ledger Accounts
Purchases **i*e***************"******* ******e***************s Dr.
Sales ***************** ***** *********** ** ***********
***********
1,52 505
Provision for Doubtful Debts *********
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * " * * * * * * * * * * * * * * * * * * * e e s s

*****°****

**

Sundry Debtors * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

*****************

Sundry Creditors ************s **ss 50,200

Bills Payable ***************************************************************** * es***a.
** **************
**

Opening Stock ****"*********** **** ****

Wages ******ss ************************* * * *************** ssensn.

*******
26,725
Salaries *****************************************
*****************
23,137 **

Furniture ************************* ********* 5575

Postage and Courier ****************************************************************
****************************
7,250
Power and Fuel ****** ***********
**************
4,226
General Expenses *******ssmnna ************s******************ss*istasmssssssa********** *
1,350
s

Bad Debts
5,831
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

***********************a
********

525
Loanto Suraj @10% p.a. (1st December, 2021). ************* ** *******

3,000
Cash in Hand and at Bank **************************as*******ss*sssuse***************************e********as*******nn.....
10,000
General Expenses Accrued but not Paid.. ***s ******************. *** **********************e

Drawings * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * g * * * * * * * * * * * * * * * * * * * * * a s *

4,452
700
Capital **********************B**a************** **************** *
**

Outstanding Wages a** * ************************************************************************** e****nsssnags

1200
Input CGST ss*********""******** ****
2,00
5,000
Input SGST ***********
5,000
*****
************

Output CGST ***********************************************aasanss****s**********s******************************

4,000
Output SGST ***************************************************************************s *******

400
**

Total
3,14,776 3,14,776

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 and Balance Sheet after
onsidering the following information:
() Depreciation on Furniture @ 10% to be charged.
(i) Sundry Debtors include 500 due from a customer who has become insolvent.
(ii) Provision for Doubtful Debts @ 5% on Sundry Debtors is to be maintained.
Giv) Goods costing 1,500 were destroyed byfire and insurance company admitted a claimfor1 0
(v) Stock on 31st March, 2022 was 12,550.
 With Adjustments
20.75

snomthe1olowine Balance of Gaurav and additional &

information given,
aijven. prepare arnd Profit
Trading and
prepare Trading
,1ow oar
year. ended 31st March, 2022 and
tossAcon the Balance Sheet as at
A C C O u n
for

t
that date:
Dr. ) Cr.)
******************** ****sve
**********************************i***** ss *************** 62,500
**************

************* *Y 4,66,000
*************************************** *

*************************.***** *
**
**** ** 75,000
******
************************* ****s 43,750
*****s *************
*****s***************"* **********************. **s
*****s** *** 5,00,000
*************************** **ss** 8,75,000
************** ********************

Bmage
inwards 10,000
. ************************************************.*******s**** *s*****************

Migeas n d
Salari
laries
31,250 **

a**************************************************************************************** 16,750
Comission
**************"******************************************************************" 1,38,750
Hadhuinery
************ *** ** **
****************************************************** 25,000
Rriture
R a dD e b t s
Recovered ******************** ******** *********************************************** ***
8,000

BiSs
feceivable
***********************"*********************s************************************* 37,500

************************************************************.************ *************** 33,750

B l S
P a y a b l e

Land
andBuilding e**************************************************************************************************" 5,00,000
********************************************************** *** * ************** 21,250
nsurance

O%BankLoan ************************************************************************************ 50,000

Bank Loan *ae******************************************************************************************* 3,000

on
nterest
********************************************************************************************************* 24,500
Bank
**********************************************************************sesesosssssnsne* 62,500
Drawings

hputCGST
***************************************************"******************** **** 15,000

nputSGST *******************************************************"** *************** 15,000

nput IGST
*******"*******"******************************************
10,000
Output CGST ***************************** *********** ********************* ****"*******"****** 19,000
Output SGST ******************************************************************************************************
19,000

Total 15,31,250 15,31,250

Adjustments:
0) Value of the Closing Stock as on 31st March, 2022 is T 50,000.

Wages and Salaries outstanding are 12,500 and Insurance prepaid is { 5,000.

)Depreciate Machinery and Furniture @ 109% and 15% p.a. respectively. Machinery included a machine

which was purchased for T 38,500 on 30th September, 2021.

d0Ods costing 10,000 were taken by the proprietor for his personal use but no entry has been made

in the books of account.

 Double Entry Book Keeping-jo
20.76 ing-ISC XI
2022:
Balance of Paras on 31st March,
21. Following is the Trial
Particulars
Dr.(R)
Particulars
1,45,000 Sundry Creditors
Sundry Debtors
63 000
52450 Capital A/c
Drawings
6,000 Returns Outward
7,10.0
Insurance 5.00
10,000 Sales 10.00 0
Rent
20,000 Output CGST
General Expenses
20,0
1,50,000 Output SGST 20 00
Salaries
75,000
Patents and Patterns
2,00,000
Machinery
1,00,000
Freehold Land
3,00,000
Building
57,600
Stock (1st April, 2021)
26,300
Cash at Bank
20,400
Freight on Purchases

32,000
Carriage on Sales
47,300
Fuel and Power
1,04,800
Wages
Returns Inward
19,000
4,06,750
Purchases
Cash in Hand
5,400
40,000
Input IGST
18,18,000 18,18,00

Following adjustments are made

valued at 68,000.
(a) Stock on 31st March, 2022 was

(b) Provision for Doubtful Debts is to be made to the extent of

5% on Sundry Debtors.

(c)Depreciate Machinery by 10%, Patents by 20% and Building by 5%.

(d) Wages include a sum of 20,000 spent on construction of a cycle shed.

(e) Salaries for the months of February and March, 2022 were not paid.

(6) Insurance includes a premium of 1,700 on a policy expiring on 30th September, 2022.

(g) General Manager is entitled to a commission of 109% on the profit after charging his commis0
You are required to prepare Final Accounts after giving effects to the adjustments.
finalAccounts-Wie
-With Adjustments 20.77

AdvancedLevel Question

an balances we
balances were extracted from the books of Modern Traders on 31st March, 2022:
Following

Particulars Particulars
8,50,000 Sales 12,00,000

50,000 Postage and Courier 8,000

Dawings

P l a n ta n dM a c h i n e r y 4,00,000 Bad Debts 4,000

8,000
Accumulated Depreciation
90,000 Provision for Doubtful Debts
2021 1,50,000 Discount Received 4,000
on
Ist April,
stock
12,000
P u r c h a s e s
8,20,000 Rent Revenue
SundryD e b t o r s 2,06,000 Insurance 7,000

50,000 Salaries 2,00,000

Fumiture

13,000
FreightInwards 20,000 Wages
Carriage Outwards 5,000 Cash in Hand 62,000

Rent,Ratesand Taxes 46,000 Cash at Bank 2,55,000

Printing and Stationery 8,000 General Reserve 50,000

Sundry Creditors 95,000 Input IGST 20,000

nput CGST 15,000 Output IGST 45,000

Input SGST 15,000

Prepare Profit & Loss Account for the year ended 31st March, 2022 and Balance Sheet as at that date giving

effect to the following:

(a) Closing Stock valued at cost was R1,72,000 whereas its net realisable value (market value) was R1,50,000.

(b) Wages Outstanding were T 5,000.

c) Provision for Doubtful Debts is to be maintained at 5% of Sundry Debtors.

d) Depreciate Plant and Machinery by 10% and Furniture by 5% on Written Down Value Method.

(e) Sundry Creditors includeR 10,000 due to Nayak who is also included in Sundry Debtors at 7 15,000.

6) New furniture for 12,000 was purchased on 1st April, 2021. Old furniture valued at 2,000 was

exchanged and balance was paid by cheque. Purchase of furniture was recorded at the net value of

furniture, i.e., 10,000.

9 A fire occurred on 27th March, 2022 destroying stock costing 10,000. Insurance company conveyed

acceptance of claim of 7,500 on 10th April, 2022. Final accounts were prepared on 1st July, 2022.

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