Q1) The following is the Trial Balance of Mr Ganesh as on 31st March, 2015:-

Particulars Debit (Rs) Credit (Rs)

Capital 500000
Cash in hand 75000
Bank overdraft @2% 100000
Purchases and Sales 600000 750000
Returns 50000 100000
Salary 125000
Taxes and Insurance 25000
Bad debts provision 50000
Bad debts 25000
Debtors and Creditors 250000 92500
Commission 32500
Investments 200000
Opening Stock 150000
Drawings 70000
Furniture 30000
Bills receivable 150000
Bills payable 125000
TOTAL 1750000 1750000

You are required to prepare Trading and Profit & Loss Account for the year ended 31st March,
2015 and Balance Sheet as on that date after taking into consideration the following adjustments:

1) Salary outstanding Rs 5000; Taxes outstanding Rs 20000; Insurance prepaid Rs 2500

2) Commission of Rs 5000 has been received in advance for work to be done next year
3) Interest accrued on investments Rs 10500
4) Bad debts of Rs 1000 to be accounted for and Provide for Bad debts at 2% on debtors
5) Depreciation on furniture at 10%
6) Closing Stock valued at Rs 225000

Q2) The following is the Trial Balance of Mr Ram as on 31st March, 2015: (10 marks)

Particulars Debit (Rs) Credit (Rs)

Capital 800000
Drawing 60000
Stock (1.4.2014) 450000
Purchases 2600000
Sales 3100000
Furniture 100000
Debtors 400000
Freight & Octroi 46000
General expenses 5000
Salaries 55000
Rent 24000
Advertising expenses 50000
Insurance 4000
Commission 13000
Discount 2000
Bad Debts 16000
Provision for bad debts 9000
Creditors 200000
Cash in hand 52000
Bank 58000
Goodwill 200000
TOTAL 4122000 4122000

You are required to prepare Trading and Profit & Loss Account for the year ended 31st March,
2015 and Balance Sheet as on that date after taking into consideration the following adjustments:

(i) Stock as on 31st March 2015 was valued at Rs 530000

(ii) Salaries have been paid for 11 months only
(iii) Prepaid insurance included above is Rs 1000
(iv) Commission earned but not yet received Rs 1220 is to be recorded in the books of a/cs
(v) Further bad debts Rs 5000 and provision for bad debts at 3% on debtors
(vi) Furniture is depreciated at 10% per annum

Q3) The following is the Trial Balance of Rajan Jewellers as on 31 st December 2015

Particulars Debit (Rs) Credit (Rs)

Capital 560000
Drawing 60000
Stock (1.1.2015) 72000
Purchases 225000
Purchase returns 1800
Sales 350000
Furniture 15000
Motor car 30000
Building 425800
Debtors 50000
Repairs and Maintenance 13000
Salaries 30000
Bad Debts 2000
General expenses 15000
Advertising expenses 22000
Insurance 7000
Commission 7500
Provision for Bad debts 1000
Creditors 56000
Cash in hand 3500
Bank 6000
TOTAL 976300 976300
You are required to prepare Trading and Profit & Loss Account for the year ended 31st Dec, 2015
and Balance Sheet as on that date after taking into consideration the following adjustments:
 (i) The Cost of Closing Stock as on 31st Dec’15 was Rs.80,000 but the Market Value was Rs.90,000.
(ii) Salaries outstanding Rs 3000, Prepaid insurance Rs 1000
(iii) Interest on capital at 6% and interest on drawings at 2%
(iv) Depreciation on Building at 5%, Furniture 5% and Motor car at 10%
(v) Only 3/4th of advertising expenses to be written off
(vi) Further Bad debts Rs 500, and provide for doubtful debts at 2% on Debtors
(vii) Make provision for discount on debtors at 1% and discount on creditors at 2%
(viii) Manager is paid a commission of 10% of net profits after making above adjustments

Q4) The following is the Trial Balance of Mr Gopal for the year ending 31.3.2016

Particulars Debit (Rs) Credit (Rs)

Capital 225000
Drawing 25000
Opening Stock 25000
Purchases and Sales 200000 350000
Returns 7500 5000
Carriage 4000
Furniture 10000
Machinery 40000
Building 200000
Bill Receivable and Bills payable 15000 3500

Wages and Salaries 12500

Bad Debts 4000
Discount allowed 6000

Taxes and Insurance 8500

Commission 6500
Provision for Bad debts 5000
Debtors and Creditors 30000 17500

Bank 25000
TOTAL 612500 612500
Additional information :-

i) Closing stock as on 31st March is Rs 20000

ii) Wages and Salaries outstanding Rs 500 and Insurance prepaid Rs 2000
iii) Provide for doubtful debts at the rate of 10% on debtors
iv) Depreciate Machinery and Furniture at 10% and 15% respectively
v) Goods costing Rs 12000 were sold on approval basis for Rs 15000 but these were not
approved by customers as yet.
vi) Goods costing Rs 1000 were taken by the proprietor for his personal use, but no entry has
been made in the books of accounts.
vii) Goods worth 800 were distributed as free samples.

Q5) The following is the Trial Balance of Mr Rajesh as on 31st March, 2015:-
 Particulars Debit (Rs) Credit (Rs)
Capital 105000
Drawing 11000
Stock (1.4.2014) 16100
Purchases 90000
Sales 177000
Debtors 40750
General expenses (including personal 7500
insurance premium of Rs 1000 paid for
one year ending 30th June 2015)
Salaries 10500
Rent 2000
Sales Tax paid 2200
Commission 3750
Provision for bad debts 1450
Creditors 14000
Cash in hand 1500
Returns 2250 3100
Carriage on purchases 1300
Carriage on sales 750
Building 75000
Machinery 36000
Fuel and power 4250
Investment 18000
Interest on investment 1800
Sales tax collected 3000
Accumulated depreciation 10000
TOTAL 319100 319100

You are required to prepare Trading and Profit & Loss Account for the year ended 31st March,
2015 and Balance Sheet as on that date after taking into consideration the following adjustments:

(i) Stock as on 31st March 2015 was valued at Rs 28350

(ii) Rent is payable at the rate of Rs 200 per month
(iii) One third of commission received is in respect of work to be done next year
(iv) Further bad debts Rs 750 and provision for bad debts at 5% on debtors
(v) Building is depreciated at 5% and Machinery at 10% per annum
(vi) Interest on drawings Rs 550
vii) Provide 2% for discount on debtors and creditors

Q6) The following is the Trial Balance of Mrs Neeti as on 31st March, 2015:-

Particulars Debit (Rs) Credit (Rs)

Capital 300000
Drawings 30000
Stock (1.4.2014) 58390
Purchases 674580
Sales 1112430
Debtors 191000
Rent received 2500
Salaries 80970
Rates, Taxes & Insurance 38910
Discounts 4400
Advertising 22640
Provision for bad debts 7100
Creditors 84010
Bank 45550
Returns 78210 13460
Carriage on purchases 39290
Carriage on sales 14040
Building 120000
Motor Vehicle 90000
Loan on Mortgage 85000
Loan 30500
Interest on loan 2000
General expenses 44890
Bills receivable & Bills payable 68820 27140
Wages 6250
TOTAL 1636040 1636040

You are required to prepare Trading and Profit & Loss Account for the year ended 31st March,
2015 and Balance Sheet as on that date after taking into consideration the following adjustments:

(i) Stock as on 31st March 2015 was valued at Rs 68500

(ii) Interest on loan taken is @ 5%
(iii) Goods costing Rs 6000 were sent to customer on ‘sale on approval basis’ for Rs 7000 was
recorded as sales. No approval was received by end of financial year
(iv) Provision for bad debts at 5% on debtors
(v) Building is depreciated at 5% and Motor vehicle at 15% per annum
(vi) Salaries and Rates outstanding are Rs 7000 & Rs 4000 respectively
(vii) Fire destroyed goods worth Rs 2000, not covered by insurance
(viii) Prepaid insurance is Rs 1750
(ix) Provide 2% for discount on debtors and creditors
(x) Provide for Manager’s commission at 5% on net profits after deducting all expenses

Q7) The following is the Trial Balance of Mrs Nirmala as on 31st March, 2015:-

Particulars Debit (Rs) Credit (Rs)

Capital 205000
Creditors 150000
Outstanding expenses 34000
Rent received 3000
Plant & Machinery 181400
Goodwill 25000
Agents Samples 13500
Opening stock 160000
Debtors 73000
Bank 10000
Cash 550
Drawings 25000
Purchases 855000
Carriage inward 7500
Wages 115000
Purchase returns 20000
Sales 1448000
Provision for bad debts 3000
Advertising 40000
Power 40000
Salary 172000
Discount received 9000
General expenses 41000
Sales return 3000
Rent and insurance 99500
Discount allowed 25000
Commission 14450
TOTAL 1886450 1886450
You are required to prepare Trading and Profit & Loss Account for the year ended 31st
March, 2015 and Balance Sheet as on that date after taking into consideration the
following adjustments:

(i) Stock as on 31st March 2015 was valued at Rs 157000

(ii) Goods costing Rs 10000 was destroyed by fire. Insurance company admitted claim for
Rs 7900 only
(iii) Write off bad debts Rs 5000 and create a provision for doubtful debts at 5%
(iv) Depreciate Plant and Machinery at 10%
(v) 25% of advertising expenses to be written off this year
(vi) Drawing Rs 10000 is included in general expenses
(vii) Manager is to be paid 5% commission on net profits after deducting all other expenses