FINANCIAL STATEMENT – SUMS
Example 1
From the Following Trial Balance and additional Information ,
you are required to prepare a work sheet and Final Accounts.
Particulars Amount Amount
Dr. Cr.
Capital 20,000
Sundry Debtors 5,400
Drawings 1,800
Machinery 7,000
Sundry Creditors 2800
Wages 10,000
Purchase 19,000
Opening Stock 4,000
Bank Balance 3,000
Carriage Charges 300
Salaries 400
Rent and Taxes 900
Sales 29,000
51,800 51,800
Additional Information:
1. Closing Stock Rs. 1200
2. Out standing Rent and Taxes Rs. 100
3. Charge depreciation on machinery at 10%
4. Wages prepaid Rs. 400
( ANSWER : P& L A/C = LOSS Rs. 4800 , Balance Sheet = 16,300)
EXAMPLE 2
The following is the Trial Balance of Shri Om . as on 31st March ,2020. Prepare Profit &
Loss Account for the year ending on 31st March , 2020 and Balance Sheet as on that date
after making the necessary adjustment.
Particular Debit Credit
Rs. Rs.
Sundry Debtors 5,00,000
Sundry Creditors 2,00,000
Outstanding Liability for Expenses 55,000
Wages 1,00,000
Carriage Outwards 1,10,000
Carriage Inwards 50,000
General Expenses 70,000
Cash Discount 20,000
Bad Debts 10,000
Motor Car 2,40,000
Printing and Stationary 15,000
Furniture and Fittings 1,10,000
Advertisement 85,000
Insurance 45,000
Salesmen’s Commission 87,500
Postage and Telephone 57,500
Salaries 1,60,000
Rates and Taxes 25,000
Drawings 20,000
Capital Account 14,43,000
Purchase 15,50,000
Sales 19,87,500
Stock on ( 1/4/98) 2,50,000
Cash at Bank 60,000
Cash in Hand 10,500
36,30,500 36,30,500
Additional Information:
1. Stock on 31st March , 2020 was valued at Rs. 7,25,000
2. A Provision for Bad and Doubtful Debts is to be created to the extent of 5% on
Sundry Debtors
3. Depreciation:
a. Furniture and Fittings by 10%
b. Motor Car by 20%
4. Shri Om had withdrawn goods worth Rs. 25,000 during the year
5. Sales include goods worth Rs. 75,000 sent out to Shanti & Company on approval
and remaining unsold on 31st March 2020. The cost of the goods was Rs. 50,000
6. The Salesmen are entitled to a commission of 5% on total sales.
7. Debtors include Rs. 25,000 bad debts.
8. Printing and stationary expenses of Rs. 55,000 relating to 2018-19 had been
provided in that year but was paid in this year by debiting outside liabilities.
9. Purchase include purchase of Furniture worth Rs. 50,000.
[ Answer : P& L A/C = Net Profit Rs. 10,375 , Balance Sheet = Rs. 15,61,500]
Example -3
The following is the trial Balance of L.N. <manufacturing Co. Ltd. , as at 31-3-2019
Particulars Debit Credit
Stock on 1st April 2018 7,50,000 -
Sales 35,00,000
Purchases 24,50,000
Wages 5,00,000
Discounts 70,000 50,000
Salaries 75,000
Rent 49,500
General Expenses including Insurance 1,75,000
Profit & Loss account on 1st April 2018 1,50,300
Dividends paid 90,000
Bad debts 48300
General reserve 1,55,000
Cash in hand and at Bank 1,62,000
Authorised capital and issued capital 10,00,000
Sundry debtors and Creditors 3,75,000 1,75,000
Plant and Machinery 2,90,000
Additional information
1. Closing Stock Rs. 8,20,000
2. Depreciate Machinery at 15% p.a.
3. Provide 5% Discount on debtors
4. Allow 2.5% discount on creditors
5. One month’s rent at Rs. 54,000 p.a. was due on 31st march 2019.
6. Six Months insurance was unexpired Rs. 3750
7. Make a provision for Income Tax at 35%.
[ ANSWER : P& L A/C = 35,824, Balance Sheet = 15,88,500]
Example – 4:
The following is the Trial balance of ABC Ltd. As at 31st March 1997
Particulars Debit Credit
Stock ( 1/4/1996) 70,000
Purchases 2,40,000
Wages 50,000
Discount 5000 6000
Salaries 14,000
Rent & General Expenses 25,000
Profit & Loss A/C , 1/4/1996 65,000
Dividend Paid 9000
Equity Capital 1,00,000
Debtors and Creditors 12,000 11,000
Plant & Machinery 36,000
Cash 4000
Reserve 15,000
Bad Debts 3000
Sales 2,71,000
Additional Information:
1. Stock on 31/3/1997 is Rs. 86,000
2. Depreciate Plant & machinery by 11% p.a.
3. Provide 5% as discount on debtors
4. Provided 2.5% discount on Creditors.
( Answer : P& L A/C = 8075 , Balance Sheet = 1,33,800)
Example 5:
The following is the trial Balance of Arman Ltd.
Trial Balance of Arman as on 31-03-2015
Particulars Debit (Rs.) Credit(Rs.)
Gross Profit 5,00,000
Salary 99,000
General Expenses 11,000
Tax -Insurance 12,000
Sundry Debtors 2,00,000
Closing Stock 22,000
Bank Overdraft 10,000
Commission 15,000
Advertisement Expenses 15,000
Interest 5,000
Furniture 80,000
Building 3,00,000
Motorcar 1,00,000
Capital 2,38,000
Drawings 10,000
Bad-debts 6,000
Bad -Debts Reserve 10,000
Loan 40,000
Creditors 20,000
Bills Receivable 5,000
Bills Payable 15,000
Carriage Outward 4,000
Discount Allowed 8,000
Discount Received 4,000
General Reserve 30,000
Cash Balance 5,000
8,82,000 8,82,000
Additional Information:
1.Salary Outstanding at Rs. 4500 per month of two employees for one month.
2. Prepaid Insurance Rs. 1000
3. Commission of Rs. 3000 is receivable
4. Calculate 10% interest on capital and 12% interest on Drawings.
5. Calculate depreciation @ 5% on furniture , at 10% on building and at 20% on
motorcar.
6. Write off Rs. 10,000 as bad debts from debtors.
7. Provide 5% bad debt reserve.
8. Provide 2% debtors discount Reserve.
9. Transfer Rs. 20,000 to general Reserve.
From the above information , prepare final accounts of Arman Ltd. For the year ending
as an 31-03-2015.
[ ANSWER: P& L A/C = 2,44,290 , Balance Sheet = 6,38,890]
