Final Account of Sole Trading Concern

OMTEX – CLASSES F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com Amount Amount PARTICULARS PARTICULARS Rs.

Debit Balances Opening Stock: Raw Materials Work-in-progress Finished goods Sundry Debtors Carriage on purchases Bills receivable Wages Salaries Telephone charges Postage Repairs to plant Repairs to office furniture Purchases Cash at bank Plant and machinery Office furniture Rent Lighting General expenses

Rs.

Credit Balances 23,000 10,000 15,500 27,000 1,500 18,000 12,000 10,000 500 500 1200 600 1,00,000 12,000 90,000 9,000 5,000 1,300 1,600

Sundry creditors Bills payable Sale of scrap Commission Provision for doubtful debts Capital A/c Sales Current Account or Rajan

17000 8500 1500 50 1650 1,00,00 0 2,00,00 0 9,700

3,38,70 3,38,70 0 0 st 1. The Trial Balance of Rajan as on 31 December, 1999 was as follows:-

The following additional information is provided to you: 1. Closing stock: Raw materials Rs. 15,800 Finished Goods Rs. 18,200 Semi-finished Goods Rs. 7,000 2. Salaries unpaid for December,1999 Rs. 1,000 3. Wages unpaid for December, 1999 Rs. 3,000 4. Machinery is to be depreciated by 5% 5. Office furniture is to be depreciated by 5% 6. Provision for Doubtful debts is to be maintained at 10% 7. Lighting is to be divided between office premises and factory. Lighting is to be charged to office premises for Rs.300 and remaining Rs. 1000 are to be charged factory. 8. Factory Premises occupy ¼th of total area. You are required to prepare Manufacturing Account, Trading Account, Profit and Loss account and the balance sheet relating 1999. 2. The following are the closing balances as on 31.12.1999 extracted from the books of Mehta. Prepare Trading and Profit and Loss account for the year ended 31st December,1999 and the balance sheet as on the same date. Show the necessary entries . PARTICULARS

Amount Rs.

Mr. Mehta’s Capital Stock on 1st January,1999 Sales Purchases Carriage inwards Rent and taxes Sales returns Salaries Purchases returns Sundry debtors Sundry creditors Bank loan at 6% (1.01.1999) Interest paid on above Printing and advertisements Drawing A/c Interest Received from A.N. Sen Cash at bank Discount received Investments Furniture and fittings Discount allowed General expenses Audit fees Insurance Traveling expenses Postage and telegrams Cash in hand Deposit with Mr. A.N. Sen (1.1.1999) interest at 9%)

1,65,00 0 70,200 4,34,40 0 3,64,65 0 27,900 8,550 12,900 13,950 8,700 36,000 22,200 30,000 1,350 21,900 15,000 400 12,000 6,300 7,500 2,700 11,310 6,000 1,050 900 3,500 4,070 570 45,000

OMTEX – CLASSES F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com Adjustments: 1. Stock as on 31st December,1999 was Rs. 1,20,000 2. Sundry Debtors included a sum of Rs. 3,000 due from Mr. Nair and Sundry Creditors included a sum of R. 4,000 due to Mr. Nair. 3. 25% of the Printing and Advertisements was to be carried forward in the next year. 4. Provide 5% for bad debts and 2% for discount for prompt payment. 5. Write off depreciation at 10% off furniture and Fittings Depreciation in respect of items sold off during the year need not be provided 6. As on 31st December, 1999 salaries and carriage inwards that remained unpaid were Rs. 1,200 and Rs. 150 respectively 7. Insurance paid in advance as on 31st December,1999 was Rs. 120 8. Furniture of the book value of Rs. 900 as on 1.1.1999 had been disposed off for Rs. 500 on 30.601999. The sale proceeds had been credited to furniture account, but the loss on sale of furniture had not been written off in books. 9. Furniture purchased for Rs. 1,000 on 1.1.1999 had been debited to Purchases A/c OMTEX – CLASSES F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com

10. Purchases to the value of Rs. 1800 had been omitted to be entered in the books. 11. Personal purchases of Rs. 700 made by Mr. Mehta had been included in the purchases 12. Provide for interest on the deposit with Mr. A.N. Sen, and bank loan. 3. From the following extracts prepare Manufacturing A/c, Trading A/c, Profit and loss A/c for the year ended 31st March, 2000 and the balance sheet as on 31st March 2000.

PARTICULARS Stock (At April 1st 1999) Raw Material Work – in – progress Finished goods Capital A/c (Including Rs. 15,000 introduced on 1.4.99) Balance with Bank Cash in hand Sales Purchase of Raw Material Return inward Wages Direct expenses Rent(Including Rs. 2500 for factory premises) Power Expenses Investments

Amount Rs.

13000 8000 19000 90000 13500 810 1,1200 0 79000 390 8500 2300 3000 1200 10100

PARTICULARS Machinery 17000 (WDV on 31st march 2000) Drawings Advertisement Debtors Office salaries Factory insurance Lighting(including Rs. 1200 for office) Carriage outward Interest Received Depreciation: Machinery Office furniture Office furniture (W.D.V on 31.3.2000) Printing and Stationary Miscellaneous Exps. Discount Received Bad debts Creditors

Amount Rs.

3000 1800 18500 3820 1070 1960 550 450 3000 800 7200 300 600 250 300 16000

Adjustments: 1. Additional Bad Debts of Rs. 500 are to be written off and R.D.D to be charged on Debtors at 5% 2. Machinery and office furniture are depreciated at wrong rates. Actual depreciation rate should be Machinery at the rate of 10% and offices furniture at the rate of 15%. 3. Closing stocks are: Raw materials Rs. 2000 WIP Rs. 16330 and Finished goods Rs. 28000.

OMTEX – CLASSES F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com 4. Following is the Trial Balance of Shri Nalawae, as on 31st March, 2001. You are required to prepare Trading and Profit and loss account and Balance sheet as on that date.

PARTICULARS Capital Drawings Opening stock Sales less returns Purchases Wages Carriage Salaries Insurance(to expire on 30-06-2001) Interest on loan 6% Loan Plant and Machinery Land and Building Lease Rent, Rates and Taxes Bad debts Bills receivable Bank balance 10% investment Debtors and Creditors

Amount Rs.Dr

Amount Rs.Cr

91,000 12,000 32,000 12,000 82,000 6,000 5,000 16,500 1,200 400 25,000 40,000 10,000 1,200 700 3,000 12,800 10,000 32,000 2,91,00 0

1,70,00 0

12,000

30,000 2,91,00 0

Additional Information: 1. 95% of the debtors are considered good. 2. Opening stock includes stock of stationery of Rs. 2000 3. Purchase includes purchase of stationery Rs. 5000 4. Stock on 31st March, 2001 was Rs. 25,000. 5. Stock of Stationery amounted to Rs. 500/- on 31st March,2001. 6. Salary represents amount paid up to February 2001. 7. Depreciation on machinery is 20% and on Land and Building. 5. From the following Trial Balance and additional information prepare Manufacturing a/c. Trading A/c and Balance Sheet as on 31st March 2001. Amount Amount PARTICULARS Dr.Rs. Cr.Rs. Stock on 1st April,2000 Finished Goods Raw Material Work in Progress Wages Office Rent and Insurance Carriage inward Bad debts Discount received Provision for doubtful Debt Patent Rights Capital Cash at Bank

1,92,000 48,000 15,000 2,78,000 40,000 20,000 8,500 15,000 13,000 22,000 4,50,000 1,20,000

Cash in hand Factory rent Salary to work staff Advertising Land and Building (Factory Sundry Debtors Plant and Machinery Sundry Creditors Purchase of material Sales Factory Expenses

15,000 18,000 67,000 27,300 2,50,000 4,20,000 2,00,000 4,20,000 3,50,000 35,000 21,25,80 0

12,27,80 0 21,25,80 0

Additional Information:a. Closing stock on 31st March, 2001 Raw Material Rs. 42500 Work in Progress Rs. 28100 Finished goods Rs. 301500 b. Provide 5% Provision for doubtful debt. c. The General Manager is entitle to commission of 5% of net profit after such commission. d. Depreciate building at 2% and plant at 5% e. Write off Rs. 8,000 as bad debt. f. Outstanding expense wereOffice Rent Rs. 2000 Factory expense Rs. 1600 Advertising Rs. 1850. 6.From the following trial balance and additional information prepare manufacturing account ,trading and profit & loss A/C and balance sheet as on 31st December 2000. DEBIT BALANCE

RS

CREDIT BALANCE

RS

Stock on 1st January,2000 Raw material Work in progess Finished goods Carriage Bills receivable Wages Salaries Telephone postage Purchases Plant and machinery Office furniture Rent Sundry debtors General expenses Repairs to plant

2,21,000 1,06,000 1,20,000 17,500 1,42,000 1,25,000 1,20,000 10,000 8,20,000 7,25,000 80,000 50,000 2,50,000 18,800 10,000

Capital account Current account Commission Sale of scrap Sundry creditors Provision for doubt full debt sales

10,00,00 0 22,000 5,700 2,000 1,80,000 20,000 15,85,60 0

28,15,30 0 28,15,30 0 Additional information: (a) write off Rs. 10,000/-as debts. (b) Stock on 31st December 2000 were Raw material Rs. 1,50,000 Work in progress Rs. 1,65,000 Finished goods Rs. 75,000 (c) Salaries and wages outstanding were Rs.10,000/-and Rs.15,000/respectively. (d) office premises occupy 1/3rd of the total area. (e) Provision for doubtful debt is 1% on sales. (f) Machinery is depreciated by 15% and office furniture 5% (g) During the year proprietor withdrawn goods worth Rs. 15,000 for personal use. (h) Included among the creditors is Rs. 5000/- due from sri sharma andincluded among creditors is Rs. 2000/- due to him. From the following trial balance and additional information ,prepare manufacturing A/C , trading and profit and loss A/C and balance sheet as on 31st December, 1999. Amount Amount PARTICULARS PARTICULARS Dr

Stock on 1/1/1999 Raw material

8,000

Cr

Sales Capital account

3,41,93 0

Manufactured goods Depreciation on plant and machines Printing and machinery Repairs to machinery Purchase of material Manufacturing goods Plant and machinery Furniture Sundry debtors Bank balance Bad debts Carriage outward Traveling expenses Manufacturing salaries

21,480 20,000 2,100 5,000 1,85,00 0 28,000 1,80,00 0 50,000 25,000 11,200 1,500 2,650 6,200 18,000 5,64,13

Sale of scrap Bills payable Sundry creditors

1,50,00 0 1,200 21,000 50,000

5,64,13 0

Additional information: 1. stock on 31st December 1999 Raw material Rs.7,000 Manufactured goods Rs. 50,000 2. Bill payable of Rs. 5000/- is dishonored. 3. Goods manufactured are supplied by manufacturing department of a sale Price of Rs.2,50,000.