Example 1: The following is the Trial Balance of M/s Negi as on 31 March 2010 Particulars Cash in Hand Purchases Wages

Carriage Outwards Opening Stock Land Patents Sundry Expenses Drawings Return Outwards Capital Rs. 540 40675 10480 3200 5760 10000 7500 3000 5245 500 71000 Particulars Cash at Bank Return Inwards Fuel & Power Carriage Inwards Premises Machinery Salaries Insurance Debtors Sales Creditors Rs. 2630 680 4730 2040 30000 20000 15000 600 14500 98780 6300

Taking in to consideration the following adjustments prepare final accounts for the same. 1. Closing Stock as on 31 March 2010, Rs 5800. 2. Depreciate machinery & patents by 10% & 20 % respectively. 3. Salaries due for the month of March amounted to Rs. 1500 4. The insurance policy expired on 30 September 2010 5. Rs. 2000 spent on installation of a shed was included in wages account. 6. Provide 5 % for doubtful debt. 7. A fire occurred on 25 March 2010 in the godown and stock valued at Rs. 1000 was destroyed. It was fully insured and insurance company has admitted full claim. 8. Rs. 2000 is to be transferred to reserve fund out of profits if any.

G.P. 43715 ,N.P. 14490

Example 2: The following is the Trial Balance of Mr. Padma as on 31 March 2008.Prepare final account for the year ended 31 March 2008. Particulars Capital Building Drawing Furniture Motor Car Loan from Ashok @12 % Interest paid on Loan Purchase & Sales Opening Stock Establishment Expenses Wages Insurance Commission Debtors & Creditors Bank Total Adjustments: 1. The value of closing stock was R.32000 on 31 March 2008 2. Outstanding wages amounted to Rs. 500 3. Prepaid Insurance Rs.300 4. Commission Received as Advance Rs.800 Debit (Rs.) 15000 18000 7500 25000 15000 900 75000 25000 15000 2000 1000 28100 20000 232500 100000 Credit (Rs.) 100000

7500 10000 232500

5. Allow interest on Capital @10 % 6. Depreciate Building by 2.5%, Furniture by 10% and Motor car by 10%. 7. Charge Rs. 500 as interest on Drawing 8. Balance of Interest due on loan is also provided for.

G.P. 29500, N.P. 5575

Example 3: The following is the trial balance of Mr. Ajit as on 31 March 2009 on the basis of that prepare final account for him.

Particulars

Debit Rs.

Credit Rs.

Stock on 1-4-2008 Net purchase & sales Wages Debtors & Creditors Machines Salary up to February 2009 Stationary Miscellaneous Expenses Commission Investment Cash Drawing & Capital Apprentice Premium (up to 5 years from 1-42008 ) Goods gone as Drawing Discount

7000 34000 8500 10000 18000 5500 500 1500 2000 8000 4500 5000

` 60000 8000

30000 3000 2500 1000

Total

104500

104500

Adjustments:

1. Closing stock in books as on is Rs.12000 out of which value of goods which has defect is decided Rs. 1000 while original value is Rs.2000 2. Wages payable is Rs. 500 3. On 1-10-2008 one personal Machine included in the Business for which proper record is maintained. 4. Allow interest on Capital 10% G.P. 23500, N.P. 12100
Example 4: The following is the information given for Mr. Salman prepare final account for him 31-3-96

Particulars Drawing Opening Stock Purchase Sales Return Carriage Inwards Salary Rent Taxes Bad Debt Investment in Share Building Furniture Debtors Cash Advertisement expenses Discount Bank Carriage Outwards Bills Total

Debit Rs. 4000 10000 60000 2000 1000 6000 4000 1000 800 20000 50000 10000 20000 1500 2400 1700 14100 1600 2900 21300 0

Particulars Capital Sales Purchase Return Commission Interest Creditors Discount Goods given as Advertisement Goods for Personal Usage Dividend Bills payable

Credit Rs. 100000 90600 4000 3000 2400 6000 500 1500 1300 1200 2500

Total

213000

Adjustments: 1. 2. 3. 4. 5. 6. 7. 8. Closing Stock is Rs.20000. Salary Payable is Rs.1500 Advance Rent paid is Rs.400 Commission is going to be received Rs. 800 Advance interest received Rs.600 Bad debt incurred Rs.1000 Depreciate furniture @ 10% & building @ 5%. Allow interest on Capital @10% & charge interest on Drawing @12 %