Final Accounts
Question 1:
State with reasons, whether the following statements are Ture or False:
(i) If Closing Stock appears in the Trial Balance then it does not enter in Trading Account. It is shown only in the Balance Sheet. [June 2024 (2 marks)]
Practical Numericals
Quesiton 1:
From the following Trial Balance, prepare Final Accounts of Balchand for the year ending 31st March, 2025:
| Particulars | Dr (₹) | Cr (₹) |
| Salary | 5,400 | |
| Insurance | 2,500 | |
| Cash | 400 | |
| Purchases | 84,170 | |
| Rent | 3,150 | |
| Drawings | 2,100 | |
| Bills Payable | 3,900 | |
| Book Debts | 30,080 | |
| Opening Stock | 29,500 | |
| Bank Overdraft | 9,700 | |
| Carriage | 2,200 | |
| Creditors | 4,200 | |
| Trade Expenses | 4,900 | |
| Sales Returns | 4,700 | |
| Machinery | 20,000 | |
| Wages | 45,000 | |
| Sales | 1,47,200 | |
| Purchase Returns | 3,900 | |
| Capital | 58,900 |
Closing Stock ₹ 36,200.
[Answer: Gross Profit – ₹ 21,730; Net Profit – ₹ 5,780; B/S – 86,680]
Question 2:
From the following Trial Balance of Mr. Anand, prepare Trading and Profit & Loss A/c for the year ended 31st March, 2025 and draw the Balance Sheet as on that date:
| Particulars | Dr. (₹) | Cr. (₹) |
| Anand’s Capital Sundry Debtors Sundry Creditors Stock as on 1.4.2024 Purchases Return Outward Sales Return Inwards Salaries Office Expenses Bad Debts Rent & Taxes Genera Expenses Discount Carriage Outward Furniture Insurance Cash in hand Wages | 30,660 70,500 64,300 3,200 15,000 2,800 6,500 7,310 1,350 5,120 6,300 900 600 3,000 | 60,000 24,400 1,200 1,31,500 500 |
| 2,17,600 | 2,17,600 |
Adjustments:
(i) Closing Stock ₹ 25,000.
(ii) Depreciation Furniture @ 10%.
(iii) Outstanding Salary ₹ 2,500.
(iv) Prepaid Insurance ₹ 100.
(v) Allow 5% p.a. Interest on Capital.
Question 3:
