Professional Documents
Culture Documents
Andhra Pradesh
Name : N.Sambaiah
Designation : Head of Section
Branch : DCCP
Institute : Suvr & SR Govt. Polytechnic
for Women, Ethamukkala
Year : I year
Subject : Accountancy –I
Subject code : CCP-102
Topic : Final Accounts
Duration : 100 minutes
Sub-topic : Preparation of final accounts
with adjustments
Teaching a aids : PPTs
CCP102.149 TO 150 1
Objectives
CCP102.149 TO 150 2
Recap
CCP102.149 TO 150 3
Recap contd..
CCP102.149 TO 150 4
Recap contd..
CCP102.149 TO 150 5
Recap contd..
CCP102.149 TO 150 6
Final accounts – solution – 15.
Trading account of Sri Ramakrishna Traders, Vizag for
the year ending 31-12-07.
Dr Cr
Particulars Amount Rs. Particulars Amount
Ps Rs. Ps
To Opening Stock 75,000 By Sales 2,50,000
To Purchases 1,40,000 Less: Taken by owner 3,500 2,46,500
Less:Taken by owner 3,500 1,36,500 By Closing stock 98,000
To Manufacturing Wages 52,000
To Coal & gas 1,000
To Freight 8,000
To Factory rent 4,500
To Gross profit 67,500
(transferred to --------------- --------------
P\L account) 3,44,500 3,44,500
--------------- --------------
CCP102.149 TO 150 7
Final accounts – solution – 15 contd..
Profit and Loss account of Sri Ramakrishna Traders,
Vizag for the year ending 31-12-07.
Dr Cr
Particulars Amount Rs. Particulars Amount
Ps Rs. Ps
CCP102.149 TO 150 9
Final accounts – solution – 15..contd
Balance Sheet of Sri Ramakrishna Traders, Vizag, for
the year ending 31-12-07
Liabilities Amount Assets Amount
Rs. Ps Rs. Ps.
Capital 3,70,000 Office furniture 25,000
Less: Drawings 11,000 Less: depreciation 5,000 20,000
3,59,000 Plant and machinery 1,50,000
Add: Net profit 4,800 3,63,800 Less: depreciation 15,000 1,35,000
Sundry creditors 35,000 Bills receivable 22,000
Bank Loan 40,000 Cash at Bank 99,450
Add: Interest to be paid 2,000 42,000 Cash in hand 7,500
Bills payable 15,000 Sundry debtors 65,000
Outstanding expenses - repairs 2,500 Less: reserve 3,250 61,750
Prepaid expenses - Insurance 600
Income received but not earned Advertisement 14,000
Consultation fee 1,000 Income earned but not received
Interest 1,000
Closing stock 98,000
--------------- ----------------
4,59,300 4,59,300
-------------- ---------------
CCP102.149 TO 150 10
Summary
CCP102.149 TO 150 11
Summary contd..
CCP102.149 TO 150 12
Summary contd..
If the loan was taken in the middle of the accounting
period, the interest is to be calculated for a period
from date of taking the loan to the end of the
accounting year
CCP102.149 TO 150 13
Frequently asked questions
1. What are the main objectives of final accounts?
2. What is a trading account ? Write down the form
of trading account.
3. What is a profit and loss account? Write down
the form of Profit and loss account.
4. What is a balance sheet? Write down the form
Balance Sheet.
5. List out the items that come on the debit side
and credit side of trading account.
6. List out the items that come on the debit side and
credit side of profit and loss account.
CCP102.149 TO 150 14
Frequently asked questions (contd..)
1. List out the items that come on the debit side and
credit side of profit and loss account.
7. List out the items that come on the liabilities side
and assets side of balance sheet.
8. Explain the following:
a) Balance Sheet in the order of liquidity.
b) Balance Sheet in the order of
permanence.
9. List out the common items that come as
adjustments.
CCP102.149 TO 150 15
Frequently asked questions contd..
CCP102.149 TO 150 16
Final accounts – Assignment problem -1
From the following Trial Balance of Sri Mehta Brothers,
Kurnool as on 31-12-2007, prepare Trading account,
Profit and Loss account and Balance Sheet.
particulars Debit Credit
Rs. Ps Rs. Ps
Land and Buildings 40,000
Bills receivable 20,000
Loose tools 11,200
Salaries of Manager 24,000
Wages 1,200
Furniture & Fixtures 12,000
Plant and Machinery 40,000
Cash on hand 1,000
Patents 12,000
Overdraft 36,000
Bills payable 22,000
Sundry debtors 24,000
CCP102.149 TO 150 17
Final accounts – Assignment-1 .. contd
particulars Debit Credit
Rs. Ps Rs. Ps
Drawings 15,000
Interest 2,000
Discount 1,400
Trade expenses 1,200
Carriage 1,000
Purchases 44,000
Salaries 12,000
Opening stock 10,000
Sales 80,000
Capital 1,60,000
Investments 30,000
--------------- -----------
3,00,000 3,00,000
--------------- ------------
Adjustments:
1. Stock as on 31-12-2007 Rs. 15,000
Contd..
CCP102.149 TO 150 18
Final accounts – Assignment-1 .. contd
- - -
CCP102.149 TO 150 19
Final accounts – Assignment problem -2
From the following information of Sri Geetanjali
Associates, Hyderabad as on 31-12-2007, prepare
Trading account, Profit and Loss account and Balance
Sheet.
Particulars Amount
Rs.
Buildings 2,60,000
Bills receivable 90,000
Sundry debtors 1,50,000
Machinery 2,00,000
Cash at bank 88,000
Cash in hand 6,000
Office expenses 4,500
Trade expenses 13,500
Salaries 38,000
General expenses 20,500
Power 3,800
CCP102.149 TO 150 20
Final accounts – Assignment problem -2
Contd..
Particulars Amount
Rs.
Octroi 3,750
Wages 5,500
Return inwards 8,000
Stock on 1-1-2007 48,750
Carriage on sales 4,250
Carriage on purchases 3,750
Purchases 1,99,500
Capital 6,00,000
Sales 4,28,000
Return outwards 9,500
Bills payable 1,00,000
Sundry creditors 1,20,000
Insurance 9,700
Drawings 1,00,000
contd..
CCP102.149 TO 150 21
Final accounts – Assignment problem -2
Contd..
Adjustments:
2. Calculate interest on capital @ 5%
3. Calculate interest on drawings @ 5%
4. Outstanding expenses
a. Wages Rs.6500
b. Salaries Rs. 1000
7. Depreciate Machinery and Buildings by 10%.
8. Stock on 31-12-07 Rs. 95,000.
CCP102.149 TO 150 22
Final accounts – Assignment problem -3
From the following Trial Balance of Sri Chaitanya
Brothers, Madras as on 31-12-2007, prepare Trading
account, Profit and Loss account and Balance Sheet.
Particulars Debit particulars Credit
Balances Rs. balances Rs
Furniture 50,000 Capital 5,00,000
Buildings 2,00,000 Bank loan 2,00,000
Bills receivable 60,000 Interest on deposits 8,000
Sundry debtors 1,00,000 Commission 6,000
Bad debts 4,000 Sundry creditors 90,000
Insurance 48,000 Bills payable 50,000
Advertisement 40,000 Reserve for bad debts 6,000
Duty and clearing charges 3,950 Purchase returns 8,500
Factory lighting 3,500 Sales 3,99,000
Salaries 36,000
CCP102.149 TO 150 23
Final accounts – Assignment problem -3
Contd..
CCP102.149 TO 150 24
Final accounts – Assignment problem -3
Contd..
Adjustments:
2. Appreciate Buildings by 10%.
3. Unpaid salariesRs.12000.
4. Outstanding wages Rs.4000.
5. Unexpired insurance Rs. 24,000.
6. Carry forward half of the advertisement expenses
to the next year.
CCP102.149 TO 150 25
1. Write off bad debts Rs. 5000
2. Maintain Reserve for doubtful debts @10%.
3. Closing stock at the end Rs. 1,20,000.
4. Commission received in advance Rs.2000.
5. Interest on deposits to be received Rs. 2500.
CCP102.149 TO 150 26
Final accounts – Assignment problem -4
Adjustments:
2. Write off bad debts Rs. 2000.
3. Create Reserve for bad debts @ 5%.
4. Allow Interest on capital @ 10%.
5. Charge interest on drawings@5%.
6. Unpaid Rent Rs. 5000 and salaries Rs.8,000.
CCP102.149 TO 150 29
1. Commission yet to be received 3500.
2. Service charges received in advance Rs.2200.
3. Insurance is paid for the period ending 30-6-
2008.
4. Closing stock Rs.70,000.
CCP102.149 TO 150 30
Final accounts – Assignment problem -5
CCP102.149 TO 150 31
particulars Debit Credit
Rs. Ps Rs. Ps
CCP102.149 TO 150 32
Final accounts – Assignment problem -5
Contd..
particulars Debit Credit
Rs. Ps Rs. Ps
Wages 2,70,000
Factory rent 25,000
Salaries 68,000
Advertisement 30,000
Office rent and insurance 48,000
General expenses 68,000
Carriage inwards 17,000
Discount allowed 14,000
Discount received 11,000
Bad debts 7,500
Provision for bad debts 10,000
Factory expenses 34,000
Patent rights 20,000
continued.. ----------------- -----------------
21,55,000 21,55,000
---------------- -------------------
CCP102.149 TO 150 33
Final accounts – Assignment problem -5
Contd..
Adjustments:
2. Stock on 1-1-07 is as follows.
Raw materials 40,000
Work-in-progress 50,000
Finished goods 2,70,000
2. Outstanding expenses – 1. Factory rent – Rs.6500
2. Wages 3000
3. Salaries 25000
3. Write off bad debts Rs.4,000
4. Provide provision for CCP102.149
doubtful TO 150
debts @ 5%. 34
Final accounts – Assignment problem -5
Contd..
5. Depreciate 1. Buildings by 3%
2. Plant by 8%
3. Patents by 20%
6. General Manager is entitled to a commission of
25% of the net profits after charging such
commission.
---
CCP102.149 TO 150 35
Final accounts – Assignment problem -5
Contd..
Notes:
1. The raw material on 1-1-07, work-in-progress on
1-1-07 and finished goods on 1-1-07 – together
comes under the Opening stock.
2. The raw material on 31-12-07, work-in-progress on
31-12-07 and finished goods on 31-12-07
together comes under the Closing stock.
CCP102.149 TO 150 36
Final accounts – Assignment problem -5
Contd..
CCP102.149 TO 150 37
QUIZ
CCP102.149 TO 150 38