PROBLEM SHEET
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PROBLEM 1:
The books of Mr. Z showed the following information:
Particulars January 1, 2021 December 31, 2021
Bank balance nil 50,000
Debtors nil 87,500
Creditors nil 46,000
Stock 50,000 62,500
Fixed assets 7,500 9,000
The following are the details of the bank transactions (figures in. ₹) -
Particulars ₹ Particulars ₹
Receipts from customers 3,40,000 Expenses paid 49,250
Payment to Creditors 2,80,000 Drawings 25,000
Capital brought in 5,000 Purchase of Fixed Assets 5,000
Sale of Fixed Assets 1,750
Other information:
1. Cost of goods sold ₹ 2,60,000;
2. Gross profit @25% on cost of goods sold;
3. Book value of fixed assets sold ₹ 2,500.
Prepare trading, profit & loss account for the year ended December 31, 2021.
PROBLEM 2:
From the following particulars presented by Rama Brothers, who maintain their accounts under Single Entry
System, calculate total purchase and total sales.
Balance on
Particulars 1.4.2020 31.3.2021
Debtors 28,000 24,000
Bills Receivable 14,000 15,000
Creditor 16,000 32,000
Bills Payable 8,000 15,000
Transaction during the year ₹
Cash Received from Debtors 2,00,000
Cash paid to creditors 1,60,000
Discount Allowed 1,000
Discount Received 2,000
Bad Debts 3,000
Returns Inwards 5,000
Return Outward 6,000
Bills Receivable dishonored 4,000
Cash paid against Bills Payable 10,000
Cash Received against Bills Receivable 16,000
Cash Sales 60,000
Cash Purchase 40,000
PROBLEM SHEET
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PROBLEM 3:
Mrs. Laxmi, a retail trader needs final accounts for the year ended 31-03-2021 for the purpose of taking a
bank loan. However, she informs you that principle of double entry had not been followed. With following
inputs, prepare a Profit & Loss A/c for the year ended 31-03-2021 and Balance sheet as on 31-03-2021.
Details of receipts and payments:
Particulars ₹
Cash deposited in bank 3,500
Dividend on personal A/c deposited into bank 250
Tuition fees of Laxmi’s daughter paid by cheque 4,500
Rent for the year by cheque 9,000
Cash received from debtors 52,500
Paid to creditors 40,025
Salaries & wages paid in cash 9,000
Transportation in cash 2,750
Office electricity in cash 6,600
Electricity (house) in cash 7,200
General expenses in cash 890
Opening and closing balances of assets & liabilities:
Particulars 31-3-2020 31-3-2021
Stock 42,500 22,500
Bank 55,500 20,500
Cash 10,850 10,500
Debtors 16,800 14,800
Creditors 15,600 22,800
Investments 15,000 15,000
She also informs you that she draws ₹6,000 from bank on monthly basis and some debtors deposit cheques
directly in bank.
PROBLEM 4:
Mr. Kumar kept no books of accounts for his business. An analysis of his rough Cash Book for the calendar
year 2021 shows the following particulars:
Receipts ₹ Payments ₹
Received from Debtors 60,000 Overdraft on 1-1-2021 7,400
Further Capital introduced 5,000 Paid to Creditors 25,000
Business Expenses 10,000
Wages paid 15,500
Proprietor’s drawings 3,000
Balance at Bank on 31-12-2021 4,000
Cash in hand 100
65,000 65,000
Following information’s are also available:
Particulars On 31-12-2020 On 31-12-2021
Debtors 53,000 88,000
Creditors 15,000 19,500
Stock-in-trade 17,000 19,000
Plant and Machinery 20,000 20,000
Furniture and Fittings 1,400 1,400
PROBLEM SHEET
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All his sales and purchases were on credit. From the above particulars prepare Trading and Profit and Loss
Account for the year ended 31 -12-2021 and a Balance Sheet as at that date after providing for depreciation
on Plant and Machinery @ 10 per cent, and on Furniture and Fittings @ 5 per cent, per annum.
PROBLEM 5:
Mr. Jaiswal commenced business as a Cloth Merchant on 1st January, 2015, with a capital of ₹ 2,000. On the
same day, he purchased furniture for cash ₹ 600. The books are maintained by Single Entry.
From the following particulars, calculate the cash on hand as on 31-12-15,
(I) prepare a Trading and Profit and Loss Account for the year ending 31st December, 2015
(II) a Balance Sheet as on that date:
Particulars ₹
Sales (including cash sales of ₹ 1,400) 3,400
Purchases (including cash purchases of ₹ 800) 3,000
Jaiswal’s drawings 240
Salaries of Staff 400
Bad Debts written off 100
Business Expenses 140
Stock of goods on 31-12-2015 1,300
Sundry Debtors on 31 -12-2015 1,040
Sundry Creditors on 31-12-2015 720
Mr. Jaiswal took cloth costing ₹ 100 from the shop for private use and paid ₹ 40 cash to his son, but omitted
to record these transactions in his books. Provide depreciation on furniture at 10 per cent per annum.
PROBLEM 6:
Following are the particulars of Arpita and Co.:
Assets and liabilities (all figures in ₹):
Date Furniture Stock Debtors Creditors Prepaid Outstanding Cash &
Exp Exp Bank
1.1.2016 36000 48000 96600 66000 3600 12000 7200
31.12.2016 38100 42,000 ? 90000 4200 10800 3750
Cash transactions during the year 2016:
Particulars ₹ Particulars ₹
Receipts from Debtors (after allowing 2.5% discount) 351000 Freight Inwards 18000
Bills Receivable discounted at an average rate of 2% 36750 Drawings 42000
4% Investment purchased at ₹ 96 (on 1.7.2016) 57600 Furniture purchased 6000
Paid to Creditors (discount at 2%) 235200 Miscellaneous receipts 3000
Expenses 87000
Additional Information:
a) During the year Bills Receivable received was ₹ 60,000; ₹ 12,000 of which were endorsed in favor
of creditors. Of the latter, a bill for ₹ 2,400 was dishonored.
b) Goods costing ₹ 5,400 were used as advertising materials.
c) Goods are invariably sold to show a profit of 50% on cost.
d) Difference in Cash Book, if any, is to be treated as drawings or introduction of capital by the
proprietor.
e) Provision @ 2.5% on debtors for doubtful debts is to be provided for.
Prepare Trading and Profit and Loss Account for the year ended 31.12.2016 and Balance Sheet as on that
date.