Worksheet No:12 INDIAN SCHOOL MUSCAT DEPARTMENT OF COMMERCE & HUMANITIES CLASS :11 ACCOUNTANCY Financial Statements of Sole proprietorship Issued on : ------------------------- Date of submission:------------------------ Name of the student:..roll No:.. Section: ALL questions are of 8 Marks. 1. From the following Trial Balance of Mahesh as on 31 st December 2010, prepare Trading and Profit & Loss Account and Balance Sheet:- Particulars Dr (`) Cr (`) Purchases 1,62,505 Sales 2,52,400 Reserve for doubtful debts 5,200 Sundry debtors 50,200 Sundry Creditors 30,526 Bills payable 3,950 Stock 26,725 Wages 23,137 Salaries 5,575 Furniture 7,250 Postage 4,226 Power & Fuel 1,350 Trade expenses 5,831 Bad debts 525 Loan to Shyam @ 10 % (1 st Sept 2010) 3,000 Cash in hand and cash in bank 10,000 Trade expenses outstanding 700 Drawings 4,452 Capital 10,000 Outstanding wages 2,000 3,04,776 3,04,776 1 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
Prepare the Trading and Profit & Loss account for the year Dec 2010 and the Balance Sheet after considering the following information;- a) Depreciation on furniture @ 10 % to be charged. b) Debtors include an item of ` 500/- due from a customer who has become insolvent. c) Provision for bad debts at the rate of 5 % on sundry debtors is to be maintained. d) Goods value ` 1,500/- destroyed by fire and insurance company admitted a claim of ` 1,000/- e) Stock on 31 st Dec 2010 was ` 12,550/- Q2. Prepare Trading and Profit and Loss account and Balance sheet form the following particulars as at 31 st March 2015 Particulars Dr (`) Cr (`) Capital/Drawings 1,400 10,000 Cash in hand 1,500 ----- Bank Overdraft @ 5% ---- 2,000 Purchase and Sales 12,000 15,000 Returns 1,000 2,000 Establishment charges 2,500 --- Particulars Dr.(`) Cr(`) Taxes and Insurance 500 --- Provision for doubtful debts ---- 1,000 Bad debts 500 --- Debtors/Creditors 5,000 1,850 Commission --- 500 Investment 4,000 ---- Stock on 1st April 2014 3,000 ---- Furniture 600 --- Bills Receivable/ Bills Payable 3,000 2,500 Collected Sales Tax ---- 150 2 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
===================== 35,000 35,000 ===================== Further you are required to take into consideration the following information: a. Salary ` 100 and taxes ` 400 are outstanding but insurance ` 50 prepaid. b. Commission amounting to `100 has been received in advance for work to be done next year. c. Interest accrued on investment ` 210 d. Provision for Doubtful debts is to be maintained at 20% e. Depreciation on furniture is to be charged at 10% pa f. Stock on 31st March 2015 was valued at ` 4,500 g. A fire occurred on 25 th March, 2015, and stock worth ` 1,000 was destroyed. It was fully insured and the insurance company admitted the claim in full. Q3. From the following Trial Balance of Shiv as on 31 st December 2010, Prepare Trading and Profit & Loss Account and Balance Sheet:- Particulars Dr. Cr. Sales 121,000 Returns 1,000 2,000 Purchases 60,000 Telephone 12,000 Wages paid and Salary Outstanding 26,000 10,000 Debtors and Creditors 30,800 28,000 Bad debts and Provision for Bad debts 1,000 10,000 Rent 12,000 Opening Stock 20,000 Bank 10,000 Machinery 30,000 Provision for depreciation on Machinery 5,000 Motor car 20,000 Motor car expenses 6,000 Distribution Expenses 4,000 Loan @16% taken on 30 th September 20,000 2010 Interest on above loan 1,200 3 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
Capital 60,000 Drawings 14,000 Employee Provident Fund 4,000 Furniture 12,000 2,60,000 2,60,000 Adjustments: a) Rent is paid up to 30 th April 2011 b) Quarterly telephone bill `3,000 paid up to 28 th February 2011.. c) Closing stock is valued at `40,000 d) Depreciation on Machinery@ 20% p.a on diminishing balance method. e) Write off further bad debts ` 800 and Provide for doubtful debts @ 5% on debto` f) The proprietor took goods worth ` 4,500 for his personal use. Q4. The following is the Trial Balance of Mr.Alok on 31 st March 2011 Trial Balance as on 31 st March 2011. Particulars Debit (`) Credit (`) Cash in hand 3,170 Purchases 40,675 Sales 98,780 Return Inwards 680 Wages 10,480 Sundry Creditors 6,300 Sundry Debtors 14,500 Capital 71,000 Return Outwards 500 Power and Fuel 4,730 Drawings 5,245 Carriage on Sales 3,200 Carriage on Purchases 2,040 Stock on 1 st April 2010 5,760 Building 35,000 Bicycle 5,000 Machinery 27,000 Salaries 16,000 General Expenses 3,000 Insurance(Annual premium paid on 1 st 600 Oct 2010) Salaries Outstanding 500 1,77,080 1,77,080 4 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
Taking into consideration the following adjustments, Prepare the Trading and Profit and Loss Account for the year ended 31 st March 2011, and Balance Sheet as at that date. a) Closing Stock at Market Price `10,000; Cost Price `7,000 b) Provide Depreciation on Machinery at 10% p.a.. c) A fire occurred on 1 st April 2011 destroying goods costing `500. d) Bicycle was sold at Book Value on 1 st April 2010 and the cash was used for domestic need by Mr.Alok.This was not recorded. Q5. The following trial balance is extracted from the books of Mahesh as on 31.12.2012 PARTICULARS DR. (`) CR. (`) Furniture and fittings 640 Motor vehicles 6,250 Buildings 7,500 Capital account 12,500 Bad debts 125 Provision for doubtful debts 200 Sundry debtors and creditors 3,800 2,500 Stock on 1.1.2012 3,460 Purchases and sales 5,475 15,450 Bank overdraft 2,850 Sales and purchases returns 200 125 Advertising 450 Interest on bank overdraft 118 Commission 375 Cash 650 Tax and insurance 1,250 General expenses 782 Salaries 3,300 34,000 34,000 The following adjustments are to be made: a) Stock in hand on 31.12.2012 was `3,250 b) Depreciate buildings at rate of 5%, furniture and fittings @ 10% and motor vehicles @ 20% c) ` 85 is due for interest on bank overdraft. d) Salaries `300 and taxes `120 are outstanding e) Insurance amounting to `100 is prepaid f) One-third of the commission received is in respect of work to be done next year. g) Write off a further sum of `100 as bad debt and provision for doubtful debts is to be made equal to 10% on sundry debtors. Prepare a Trading and Profit and Loss account for the year ending 31.12.2012 and Balance sheet as on that date. 5 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
Q6.On 31 st December 2012, the following balances were extracted from the books of a merchant. Particulars ` Particulars ` Drawings 3,000 Capital 28,000 Sundry debtors 20,100 Sundry creditors 6,701 Stock on 1 st January 2012 6,839 10% Bank Loan(1 st July 2012) 13,200 Cash in hand 2,050 Bad debts reserve 710 Interest on10% bank loan 300 Sales 1,10,243 Motor vehicles 1,000 Purchase returns 1,346 Cash at Bank 12,579 Discount (cr) 540 Land and Buildings 12,000 Bills payable 2,641 Bad Debts 525 Rent received 250 Purchases 66,458 Rates, Taxes & Insurance 2,891 Sales returns 7,821 Advertising 3,264 Carriage outward 2,407 General expenses 3,489 Carriage Inward 2,929 Bills receivable 6,882 Salaries 9,097 6 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
Prepare Trading and Profit and Loss account for the year ended 31 st December 2012 and Balance sheet as on that date after making adjustment for the following matte` a) Depreciate Land and buildings at 2.5% and motor vehicles at 20%. Land and building includes additional purchase of land of `4,000 on 1 st July 2012. b) Salaries amounting to `750 and rates amounting to `350 are outstanding. c) Prepaid insurance amounted to `150. d) Provision for bad debts is to be maintained at 5% on Sundry debtors. e) Provide Manager s commission @ 10% on net profits after such commission. f) Stock in hand on 31 st December, 2012 was valued at `6250/- at market price and ` 6,500 at cost price. g) Goods costing `5,000 were destroyed by fire and the insurance company agreed to pay `4000 h) Proprietor has taken goods costing `1000 for personal use. Q7.From the following Trial Balance as on 31.12.2014and additional information, prepare the Trading a/c, P&L a/c of Mr. X for the year ended 31.12.2014 and balance sheet as on that date. Particulars Debit (`) Particulars Credit (`) Cash 20,000 Sales 3,61,000 Stock 1.4.2013 81,600 Returns 390 Wages 45,050 12% Loan ( on 1.10.2013) 40,000 Purchases 2,60,590 Creditors 60,610 Returns 4,800 Discount 1,060 Repairs 3,350 Capital 75,000 Bad Debts 4,620 Interest on Loan 1,200 Salaries 16,000 Sales Tax 1,600 Octroi 1,000 Insurance 2,000 Charity 250 Rent 4,000 Machinery 32,000 Debtors 60,000 Total 5,38,060 5,38,060 Additional information: 7 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
a. Wages include ` 4,000 for installation of new machinery on 1.1.2014. b. Stock on 31.12.2014` 81,850 c. Depreciate machinery by 10% p.a d. Unpaid salaries ` 1,600 e. Create a Provision for Doubtful debts at 5%. f. Advance rent paid ` 1,000 g. Unexpired insurance `600 h. Manager is entitled to a commission of 10% of net profits after charging such commission. Q8The following balances were extracted from the books of Karma Traders on March 31 st 2015 Trial Balance as on 31 st December, 2014 Particulars Amount ` Amount Land and Building Plant and machinery Capital Debtors and Creditors Telegraph and postage Opening Stock Rent Bills payable Loan Power Purchases and Sales Return inward Wages Salary Insurance Discount Repair and Renewals Legal charges Provision for bad debts General Reserve Trade Taxes Investment Bad Debts Trade Expenses Commission Travelling Expenses Drawings 2,55,000 1,20,000 75,000 400 40,000 2,000 3,500 75,000 2,500 4,500 2,500 3,200 1,000 2,000 700 1,200 65,000 2,000 4,500 1,250 1,230 20,020 2,70,000 50,000 50,000 1,10,000 1,50,000 1,500 1,000 50,000 6,82,500 Additional Information : a) Closing stock for the year was `35,500. 6,82,500 8 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12
b) Depreciation charged on plant and machinery @ 5 % and land and building @ 6 %. c) Interest on drawings @ 6 % and interest on loan @ 5 %. d) Interest on investments @ 4 %. e) Further bad debts ` 2,500 and make a provision for bad debts on debtors @ 5%. f) Create a discount on debtors @ 2 %. g) Salary outstanding ` 200. h) Wages outstanding ` 100. i) Insurance prepaid ` 500. You are required to prepare a trading and profit and loss account and a balance sheet on March 31 st 2015 *************************** 9 I S M A C C O U N T A N C Y C L A S S 1 1 W O R K S H E E T - 12