Financial statements of Manufacturing Concerns -Statement of Manufacture, Statement of Trading and Profit & Loss -Balance Sheet. Financial statement of Non-manufacturing Concerns, Statement of Profit and Loss and Balance sheet.

1. Unit-2 Financial statement of sole Proprietors
Q1. From the following information prepare the Manufacturing Account of Mr. Rajesh Naidu and
find out the cost of production for the year ending 31/03/2021.
Stock on 1/04/2020
Raw material 21,000
Work in progress 9,500
Finished goods 15,500
Purchases of Raw materials 85,000
Carriage Inwards 1,500
Wages 13,000
Repairs to plant 1,100
Plant and machinery 70,000
Rent 6,000
Lighting 1,350
Managers salary 10,000
sale of scrap 2,500
Stock at 31-03-2021:
Raw materials 16,200
Work in progress 7,800
Finished goodsc18,100
Adjustments:
The manager salary is to be allocated 2/3 to factory and 1/3 to office.
2. Outstanding wages 1000
3. Machinery is to be depreciated by 10%
4. Office premises occupies 1/4 total area.
5. Lighting is to be allocated in the ratio of 40:60 so factory offices.
Q.2 From the following information prepare the Manufacturing Account of Mr. Muniraju and
find out the cost of production for the year ending
31/03/2021.
Stock on 1/4/2020
Raw material 27,000
Work in progress- 24,000
Finished goods 10,000
Stock on 31/03/2021
Raw material 28,000
Work in progress 29,000
Finished goods 8,000
Purchases of Raw materials 2,70,000
Carriage Inwards- 2,200
Wages- 54,000
Works manager's salary 31,200
Sundry Expenses (factory)- 6 ,800
Factory light & power- 5,000
Machinery 1,50,000
Managers salary 10,000
Salary of Muniraju 24,000
Adjustments:
1. Outstanding factory light and power 500
2. Outstanding wages 5000

2. 3. Salary of Muniraju is to be allocated 2/3 to factory, 1/3 to office
4. Charge Depreciation on machinery @ 10% p.a.
Q.3 From the following particulars prepare the Manufacturing Account of Mr. Sumanth and find
out the cost of production for the year ending
31/03/2021
Opening Stock
Raw material 42,000
Work in progress 19,000
Finished goods 31,000
Carriage on purchases 3,000
Wages 26,000
Salaries 20,000
Repairs to plant 2,200
Purchase of Raw Material1,70,000
Plant & Machinery1,40,000
Rent 12,000
Lighting 2,700
Sale of scrap 50,000
Closing Stock:
Raw material 32,400
Work in progress 15,600
Finished goods 30,200
Adjustments:
1. Depreciation to be charged on plan at 15%
2. Office premises occupy 1/4 of total area
3. Salary and lighting to be charged 3/5 to factory and 2/5 to office.
0.4. From the following balance and the information of Mr. Suman Prepare the
Manufacturing and Trading Accounting.
Stock of Commencement
Raw material 10,000
Work in progress 5,000
Finished goods 45,000
Purchases of Raw materials 71,000
Freight &Octroi 1,500
Manufacturing wages 40,000
Power and Water 3,500
Factory Rent 3,000
Sales 1,57,000
Factory expenses 2,000
Return inward (Finished goods) 2,000
Return outward (Raw materials) 1,000
Stock at Close:
Raw materials 12,000
Work in progress 6,000
Finished goods 57,000

3. 5. Mr. Prasad runs a factory which produces caps. Following are the details
available in respect of his manufacturing activities for the year ended on
31.03.2021
Opening work-in-progress (4,000 units) 8,000
Closing work-in-progress (5,000 units) 10,000 -
Opening stock of Raw materials 75,000
Closing stock of Raw materials 85,000
Purchase of raw material 4,20,000
Hire charges of machine @ Rs. 0.50 per unit manufactured
Rent of factory 1,50,000
Direct wages- @ * 0.70 per unit manufactured and @Rs. 0.30 per unit of closing W.I.P
Repairs and maintenance 100,000
Units produced 2,60,000
Prepare a manufacturing Account of Mr. Prasad for the year ended 31.03.2021.
Q.6 Following are the balance as on March 31, 2021 takes from the books of Saha Brothers. You
are required to prepare: (a) Manufacturing Account and Profit and Loss Account.
Particulars ₹ Particulars
Opening stock:
Raw material
Work-in-progress
Finished goods
Closing stock:
Raw material
Work-in-progress
Finished goods
Purchases (raw
material)
Factory expenses:
Wages
Carriage inwards
Rent
Factory repairs
4,000
6,000
9,000
3,000
8,000:
6,000
30,000
24,000
1,000:
3,200
4,200
Plant repairs
Supërvisors' remuneration
Works manager's salary
Administration overhead:
Salaries
Other expenses
Selling overhead
Salaries
Commission
Advertising
Other expenses
Distribution overhead
Van expenses
Wages
7,500
10,000
4,000
4,000
6,000
2,000
1,000
5,000
1,600
1,800
1,000
Additional information:
Scrap value was estimated at 500
Sales less returns amounted to 1,00,000
Directors fees 4,000

4. Q.7 Following are the balance as on March 31, 2021 takes from the books of Kumar Brothers. You
are required to prepare: (a) Manufacturing Account and Profit and Loss Account.
Particulars ₹ Particulars ₹
Opening stock:
Raw material
Work-in-progress
Finished goods
Closing stock:
Raw material
Work-in-progress
Finished goods
Purchases (raw
material)
Factory expenses:
Wages
Carriage inwards
Rent
Factory repairs
5,000
7,000
9,000
3,000
8,000:
6,000
50,000
20,000
5,000:
3,000
2,000
Plant repairs
Supervisors' remuneration
Works manager's salary
Administration overhead:
Salaries
Other expenses
Selling overhead
Salaries
Commission
Advertising
Other expenses
Distribution overhead
Van expenses
Wages
7,500
10,000
5,000
4,000
6,000
2,500
1,500
3,000
1,000
1,500
1,000
Additional information:
Scrap value was estimated at 1000
Sales less returns amounted to 1,20,000
Directors fees 4,000.
Q.8 From the following Ledger balances, Ascertain Gross Profit:
Stock (on 1.4.2020) 1,20,000
Sales 6,00,000
Sales returns 20,000
Purchases 4,80,000
Purchase returns 6,000
Wages 6,500
Carriage inwards 1,500
Closing stock (on 31.3.2021) 1,50,000

5. 0.9 Prepare a Trading Account of Mr. Murali for the year ending 31st March 2021
from the following particulars.
Particulars Amount
Purchases of materials 5,50,00
Carriage on purchases 13,200
Wages 1,54,000
Stock of goods on 1-04-2020 7,92,00
Stock of goods on 31-03-2021 8,36,000
Sales 14,30,000
Sales return 1,76,000
Purchases return 66,000
Duty and Clearing charges 1,54,000
Factory Rent and Lighting expenses 66,000
Factory Salaries 44,000
Q.10 From the following information, prepare the Profit and Loss Account of Naveen for the year
ending:31st March 2021.
Particulars Amount ₹
Gross Profit
Salaries and wages
Wages and Salaries
Carriage Inwards
Carriage Outwards
Discount Allowed
Discount Received
Commission paid
Commission received
Interest paid
Interest received
Rent paid
Rent Received
General expenses
Miscellaneous expenses
Miscellaneous incomes
7,39,000
60,000
5,000
5,000
10,000
5,000
8,000
3,000
4,000
6,000
5,000
4,000
6,000
7,000
4,000
3,000

6. Q.11 From the following information, prepare the Profit and Loss Account for the
year ending 31st March 2021.
Particulars ₹ Particulars ₹
Gross Profit
Salaries and wages
Discount allowed
Discount received
Interest received
Interest on loan paid
Commission to Paid
Commission received
Rent received
Rent, Rates and Taxes paid
Fire insurance premium
Freight outward
Sales Promotion Expenses
Repairs and Maintenance
Printing and Stationery
Travelling Expenses
Entertainment Expenses
Advertising and Publicity
2,70,00
75,000
6,000
3,000
9,000
7,500
9,000
6,000
3,000
12,000
10,500
7,500
3,000
3,000
1,500
6,000
4,500
14,400
Bad debts
Telephone Expenses Packing
expenses
Bank charges
Legal charges
Loss by Embezzlement
Loss by Fire
Loss on sale of Fixed Assets
Profit on sale of Fixed Assets
Dividend received on Shares
Income from Investment
Audit Fees
Miscellaneous expenses
Miscellaneous Income
Depreciation on Furniture
6,000
3,000
3,000
1,500
6,000
15,000
3,000
1,500
27,000
3,000
1,500
9,000
6,000
9,000
9,000
Q.12 From the following information, prepare a Balance Sheet of Mr.Shriyan as
on 31st March 2021.
Particulars ₹ Particulars ₹
Furniture and Fixtures Prepaid
Expenses
Income received in advance
Bills payable
Sundry Debtors
Bank overdraft
Long-term Loan from Bank
Capital
Land
Drawings
Cash in Hand
25,000
1,000
2,000
4,000
1,00,000
9,000
1,00,000
2,00,000
10,000
20,000
5,000
Plant and Machinery
Accrued Income
Outstanding expenses
Bills receivable
Sundry Creditors
Invest. in Shares of X Company
Closing Stock
Building
Goodwill
Net Profit
Cash at Bank
95,000
2,000
1,000
2,000
99,000
20,000
75,000
90,000
20,000
70,000
20,000

7. Q.13 From the Trial Balance and other particulars given below you are required
to prepare Trading and Profit and Loss account for the year ending 31-3-
2014 and Balance sheet as on that date:
Adjustments:
(1) Stock on 31-3-2021 16,580
(2) Insurance prepaid *70
(3) Wages outstanding 800 outstanding salaries 350 and outstanding rent 150
(4) Depreciation on plant and machinery by 5% and fixtures and fittings by 10%.
(5) Reserve 26/debtors for bad debts.
Particulars Debit Credit
Drawings and Capital
Purchases and sales
Debtors and creditors
Returns
Wages
Manufacturing expenses
Stock on 1-4-2020
Factory fuel and power
Office salaries
Factory lighting
Carriage outward
Plant and Machinery
Furniture and fixtures
Bills Payable
Travelling expenses
Cash in hand
Cash at bank
Rent and taxes
Office expenses
Discount allowed
Insurance
Carriage inwards
5,820
83,290
47,800
7,422
9151
2,500
21,725
542
3,745
392
960
55,000
1,720
-
925
68
2,425
1,765
2,778
422
570
897
93,230
1,25,177
22,580
3,172
-
-
-
-
-
-
-
-
-
6,422
-
-
-
-
-
-
-
-
2,51,681 2,51,681

8. Q.14 From the following trial balance of Mr.Devaraj, prepare the final account for
the year ended 31st March, 2021 and the balance sheet as, at that date:
Particulars Amount Amount
Land and buildings
Purchases
Stock on 1.4.2013
Returns
Wages
Salaries
Office expenses
Carriage inwards
Carriage outwards
Discount
Bad debts
Sales
Capital Account
Insurance
Commission.
Plant and machinery
Furniture and fixtures
Bills receivable
Sundry Debtors
Sundry Creditors
Cash in hand
Cash at bank
Office equipment
Bills payable
50,000
1,10,000
40,000
1,500
10,000
9,000
2,400
1,200
2,000
750
1,200
-
1,500
-
-
50,000
10,000
20,000
40,000
-
1,500
4,500
12,000
-
-
-
-
2,500
-
-
-
-
-
1,200
2,05,000
1,30,000
-
1,500
-
-
-
-
25,000
-
-
-
2,350
3,67,550 3,67,550
The following adjustments are required:
(1) Closing stock amounted to *60,000.
(2) Outstanding liabilities: Wages 2,000, Rent *3,000.
(3) Depreciate land and buildings at 5% and plant and machinery at 10%, office
equipment’s and furniture and fixtures at 10%.
(4) Raise a bad and doubtful debts reserve at 5% on sundry debtors.
(5) Insurance premium prepaid 200.
(6) Provide interest on capital at 5%

9. Q.15 The following is the trial balance of Mr.Mahesh as on 31-3-2021 Prepare Profit and loss
account and balance sheet
Additional Information:
(a) Provide for depreciation at 10% on machinery and 5%on furniture
(b) Provide for bad and doubtful debts at 5% on debtors.
(c) There is an outstanding wages of 2,000
(d) Salary paid in advance 600
Particulars Debit Credit
Opening stock
Purchases
Wages
Sales
Salaries
Rent at 250 p.m.
Electricity expenses
Trade expenses
Interest on loan
Commission
Machinery
Furniture
Debtors
Building
10% loan
Creditors
Capital
Drawings
10,000
1,80,000
3,000
-
6,600
2,750
550
1,500
900
200
29,000
5,000
10,500
30,000
-
-
-
5,000
-
-
-
2,05,000
-
-
-
-
-
-
-
-
-
-
10,000
15,000
55,000
-
2,85,000 2,85,000

10. Q.16 From the following Trial balance of Ravikumar as on 31.3.2021. prepare Final A/cs.
Name of accounts Debit Credit
Drawings and capital
Bills Receivable
Machinery
Debtors and creditors
Wages
Purchases and sales
Commission received
Rent and Taxes
Stock (1.4.2015)
Salaries
Travelling expenses
Insurance
Repairs
Bad debts
Furniture
Returns
Cash in hand
15,000
22,000
20,000
60,000
39,000
2,52,000
-
6,000
90,000
10,500
2,000
600
3,400
3,500
-
5,000
2,500.
1,20,000
-
-
58,000
-
3,55,000
5,500
-
-
-
-
-
-
-
9,000
2,000
-
5,40,500 5,40,500
Adjustments:
(1) Closing stock on 31.3.2016 1,00,000
(2) Provision for bad debts. 5% on debtors
(3) Prepaid insurance 100
(4) Commission earned but not received 500
(5) Wages and salaries outstanding 1,000 and respectively.
(6) Depreciate machinery at 5% and furniture 10%.