COMPANY FINAL ACCOUNTS
Question1
Prepare the final accounts from the following trial balance as on 31.03.2019
Debit balance
Calls in arrears 5000
Premises 750000
Machinery 150000
Furniture 50000
Purchases 680000
Wages 125000
Salaries 60000
Interim dividend (including corporate dividend tax) 20000
Goodwill 200000
Debtors 60000
Bills receivable 13000
Bad debts 2000
Debenture interest (up to 30.9.2019) 20000
Stock on 1.4.2018 41000
2201000
Credit balance
Share capital 500000
Sales 1000000
Reserve fund 180000
P& l account 35000
Creditors 75000
10% debentures 400000
Bills payable 10000
Reserves for doubtful debts (1.4.2017) 1000
2201000
Adjustments
1. The stock on 31.3.2019 was valued at Rs.80000
2. Depreciate machinery and furniture by 10%
3. maintain R.DD at 5% on debtors
4. the directors proposed a final dividend at 15%
5. the debenture interest is unpaid for 6 months
Question 2
Premier company limited had an authorized capital of rs.6000000 in equity shares of rs10/-each
its trial balance on 31.03.2019 is given below:
Rs.
Calls in arrears 7500
Premises 300000
Plant and Machinery 330000
Interim dividend ( including Corporate Dividend tax) 37500
Stock on (1.4.2018) 75000
Fixtures 7200
Debtors 87000
Goodwill 25000
Cash in hand 760
Cash in bank 39900
Purchases 185000
Preliminary expenses 5000
Wages 84865
General expenses 16835
Freight and carriage 13115
Salaries 14500
Director’s fees 5725
Bad debts 2100
Debenture interest paid 9000
Called up capital 400000
6% debentures 300000
P & l account (1.4.2018) (cr.) 14500
Bills payable 38000
Creditors 50000
Sales 415000
General reserve 25000
Bad debts provision (1.4.2018) 3500
Adjustments
1. Depreciate plant and machinery by 10%
2. Write-off preliminary expenses rs.500
3. Provide for debenture interest due
4. Provide for reserve for doubtful debts at 5% on debtors
5. Of the debtor rs.500 are further bad
6. Closing stock rs.95000
Prepare trading and p & l account for the year ended 31st march 2019 and Balance sheet as on that
date as per law.
Question-3
Sunrise company Ltd company with an authorized capital of Rs.500000 divided into 5000 equity
shares of Rs.100 each,2500 shares were called and fully paid, gives you the following ledger balances
as on 31.3.2019.
Stock(1.4.2018) 50000
Sales 425000
Purchases 300000
Wages 70000
Discount allowed 4200
Discount received 3150
Insurance paid 6720
Salaries 18500
Rent 6000
General expenses 8950
Profit and loss A/c(Cr) 6220
Printing and stationery 2400
Advertisement 3800
Bonus 10500
Debtors 38700
Creditors 35200
Plant and machinery 80500
Furniture 17100
Cash in bank 134700
Reserve 25000
Loan from M.D. 15700
Bad debts 3200
Calls in arrears 5000
You are required to prepare trading and profit and loss Account, Profit and loss Appropriation
Account, the Balance Sheet for the year ended 31.3.2018.
The following further information is also given for adjustments:
1. Closing stock as on 31.3.2019 Rs.91,500.
2. Provide 15% depreciation on plant and 10% on furniture respectively.
3. Outstanding liabilities were wages Rs.5200, salary Rs.1200 and rent Rs.600.
4. Dividend @ 5% on paid up capital is to be provided.
Question-4
The following is the trial balance of Detergent Company Ltd. As on 31.3.2019.The Company has
20000 shares of Rs.100 each as registered Capital.
Particulars Dr. Cr.
Rs. Rs.
Shares (3000 shares of Rs.100 each) - 300000
Calls in arrears 16000 -
Reserve fund - 250000
Building 180000
Fixed deposit - 100000
Wages 30000
Machinery 89000
Furniture 80000
Purchases and sales 210000 525000
Salary 60000
Debtors and creditors 220000 150000
B/R and B/P 61000 90000
Directors fees 20000
Returns 15000 20000
Freight 10000
Manufacturing expenses 5000
Opening stock 65000
Interim dividend (Excluding CDT) 25000
Audit fees 15000
Profit and Loss A/c - 27000
Tools 38000
Preliminary expenses 60000
Debentures - 100000
Interest on debentures 14000
Investments 250000
Goodwill 52000
Insurance and Taxes 20000
Printing and Stationery 15000
Cash and Bank Balances 12000
1562000 1562000
Adjustments:
(a) Directors proposed a total dividend of 25%.
(b) Write off 25% of preliminary expenses and 10% of goodwill.
(c) Depreciate buildings by2% and furniture by 5%.
(d) Transfer Rs.60000 to Reserve Fund.
(e) Insurance prepaid Rs.1500.
(f) Closing stock Rs.80000
Prepare Trading and Profit and Loss Account and Balance Sheet.
Question-5
Mahendra Manufacturing Company, Mangalore was registered with a nominal capital of Rs.600000
in equity shares of Rs.10 each. The following is the list of balances extracted from the books on
31.3.2019.
Particulars Dr. Cr.
Rs. Rs.
Furniture 7200
Calls in Arrears 7500
Plant and Machinery 300000
Premises 330000
Interim Dividend (including CDT) 37250
Stock (1.4.2018) 75000
Debtors 87000
Goodwill 25000
Cash in hand 750
Cash at bank 60900
Purchases 185000
Preliminary expenses 5000
Wages 84865
General expenses 6835
Advertising 10000
Freight and Carriage 13115
Salaries 14500
Directors fees 5725
Bad debts 110
Debenture Interest Paid 9000
Subscribed Capital - 400000
6% Debentures - 300000
Profit/Loss Account - 14250
Bills Payable - 38000
Creditors - 50000
Sales - 415000
General reserve - 25000
Bad debts Reserve (1.4.2007) - 3500
Loan - 21000
1266750 1266750
Adjustments
1. Depreciate plant and machinery by5%, building by 2% and furniture by Rs.1200.
2. Write off Rs. 1000 from Preliminary expenses.
3. Provide half years debenture interest.
4. R.D.D. on 31.3.2019 should be equal to 1% on sales.
5. Outstanding Directors fee Rs.275.
6. Goods of value of Rs.1500 were distributed as free samples during the year but no entry in
this respect has been made.
7. Closing stock Rs.95000.
