The document contains 8 problems providing various financial data in the form of trial balances, ledger account balances, and other financial statements. The problems require preparing trial balances, trading and profit & loss accounts, and balance sheets from the data provided.

1. St.Mary’s School of Management Studies
Jeppiaar Educational Trust, Chennai – 119
Subject: Management Accounting
Problems in Final Accounts
Problem 1:
Prepare the Trial Balance as on 31-12-2002 from the following balances of Thiru. Chinnadurai.
Rs. Rs.
Capital 40000 Purchases 94000
Creditors 13000 Sales returns 3400
Drawings 4000 Purchase returns 2400
Salaries 7200 Carriage inwards 1400
Bills receivable 5800 Printing & stationery 3500
Bills payable 7000 Stock 29900
Debtors 16000 Machinery 10000
Sales 144000 Household goods 3000
Insurance 1200 Wages 5000
Misc.expenses 600 Rent 1600
Land 20000 Interest received 1700
Discount paid 900 Traveling expenses 1000
Commission received 800 Electricity charges 400
Problem 2:
The following balances are extracted from the books of Thiru. Subbiah. Prepare the Trial
Balance as on 30-06-2002.
Rs. Rs.
Capital 20000 Machinery 6000
Cash in hand 5000 Debtors 8000
Building 20000 Repairs 400
Stock 3000 Wages 1700
Sundry creditors 6000 Insurance 300
Commission paid 700 Sales 90000
Rent & taxes 300 Sales returns 400
Purchases 60000 Carriage 200
Furniture 1000 Telephone 250
Loan to M 1000 Salaries 600
Discount allowed 50 Discount earned 100
Drawings 5000 Bank o/d 4300
Bills receivable 860 Reserves 900
Office expenses 350 Car 5200
Purchases returns 750 Bills payable 6000
Computer 7740
M. Daniel Rajkumar Page 1 of 13

2. Problem 3:
From the following balances prepare the Trial Balance of Mr.X
Rs. Rs
Drawings 4800 Purchases 175000
Opening stock 30000 Discount received 1000
Capital 50000 Discount allowed 950
Furniture 13000 Repairs 1000
Creditors 15000 Sales 235350
Printing charges 1200 Rent 2500
Coal 1600 Sundry expenses 1000
Bank loan 20000 Bills receivable 12500
Freight 3500 Carriage outwards 1500
Income tax 9500 Bills payable 1700
Machinery 65000
Problem 4:
Prepare Trial Balance from the following balances of Thiru.Saravanan.
Rs. Rs.
Capital 20000 Cash in hand 300
Building 15000 Cash at bank 4700
Machinery 10000 Salaries 14000
Furniture 1000 Rent 4000
Motor car 8000 Commission 1400
Opening stock 16000 Rates & taxes 600
Purchases 74000 General expenses 200
Purchase returns 1000 Insurance 400
Sales 140000 Discount earned 500
Sales returns 500 Discount allowed 700
Sundry debtors 15000 Office expenses 800
Tools 300 Creditors 5400
M. Daniel Rajkumar Page 2 of 13

3. Problem 5:
Prepare the Trial Balance as on 31-12-2002 from the following ledger account balances
of Thiru.Pattabi.
Rs. Rs.
Drawings 3,000 Tax 1,750
Capital 12,000 Sales 64,000
Creditors 21,500 Salaries 4,750
Bills payable 2,000 Sales returns 500
Sundry debtors 25,000 Purchase returns 550
Bills receivable 2,600 Traveling expenses 2,300
Loan from X 5,000 Commission paid 50
Fittings 2,250 Trading expenses 1,250
Opening stock 23,500 Discount (cr) 2,000
Cash in hand 450 Rent 1,000
Cash at bank 6,250 Bank o/d 3,000
Purchases 28,000 Vehicle 7,400
Problem 6:
Prepare Trading and Profit and Loss account for the year ending 31-12-2001 from the books of
Mr.Raman.
Rs. Rs.
Opening stock 15,000 Carriage inwards 4,000
Purchases 1,65,000 Wages 10,000
Purchase returns 10,000 Sales returns 5,000
Postage 300 Salaries 5,000
Discount (Dr.) 500 Stationeries 1,000
Bad debts 100 Interest 800
Sales 3,00,000 Insurance 400
The closing stock was valued at Rs.80, 000.
Problem 7:
From the following Trial Balance of Mr.SASI prepare Trading and Profit&Loss
Account for the year ending 31-12-2001. Rs.
Rs.
Purchases 54,000 Sales 1,04,000
Salaries 35,000 Return outwards 1,200
Office expenses 400 Discount received 600
Trading expenses 800 Interest received 300
Lighting 1,100 Capital 17,800
Carriage inwards 800
Returns inwards 1,200
Discount allowed 400
Commission allowed 200
Stock 6,000
Income tax 4,000
Cash in hand 20,000
------------ -----------
1,23,900 1,23,900
M. Daniel Rajkumar Page 3 of 13

4. Problem 8:
From the following Trial Balance extracted from the books of Thiru.Anbu as on
31-03-2001 prepare (1) Trading, Profit & Loss account and (2) Balance sheet.
Debit Rs. Credit Rs.
Cash in hand 2000 Capital 2,00,000
Machinery 60,000 Sales 2,54,800
Stock 50,000 Creditors 40,000
Bills receivable 1600 Bank o/d 22,000
Sundry debtors 50,000 Return inwards 3000
Wages 70,000 Discount received 1800
Land 40,000 Bills payable 1800
Carriage outwards 2400
Purchases 1,80,000
Salaries 24,000
Rent 4000
Postage 1000
Return outwards 3200
Drawings 10,000
Furniture 18,000
Interest 600
Cash at bank 6,600
------------ -------------
5,23,400 5,23,400
------------ -------------
The closing stock was valued at Rs.1, 00,000
Problem 9:
From the following Balances of Mr.R, prepare Trading account for the year ending 31 st March
2001.
Rs.
Opening stock 12,000
Purchases 28,000
Carriage inwards 200
Sales returns 1200
Purchase returns 1200
Sales 40,000
Wages 1500
Stock (on 31-03-2001) 14,000
M. Daniel Rajkumar Page 4 of 13

5. Problem 10:
The following are the balances extracted from the books of Mr.Guru, prepare profit & loss
account for the year ending 31-03-2002.
Rs. Rs.
Gross profit 25,000 Traveling expenses 500
Salaries 5,600 Stationeries 75
Insurance 200 Printing charges 375
Discount allowed 400 Rent 650
Discount received 300 Interest loan 225
Commission earned 100 Repairs 125
Advertisement 450 Office lighting 55
Taxes 150 General expenses 875
Postage expenses 175
Problem 11:
From the following balances of Mr.Bharath, prepare Trading, Profit and Loss account and
balance sheet for the year ending 31-03-2001.
Rs. Rs.
Stock 9,300 Sales returns 120
Repairs 310 Creditors 12,370
Machinery 12,670 Advertisement 500
Furniture 1,330 Cash in hand 160
Office expenses 750 Cash at bank 5,870
Trading expenses 310 Sales 20,560
Land 15,400 Sundry expenses 150
Bank charges 50 Insurance 500
Miscellaneous income 200 Traveling expenses 200
Purchases 15,450 Capital 24,500
Purchase returns 440 Loan 5,000
Closing stock was valued at Rs.7,585.
Problem 12:
The following Trial Balance has been extracted from the books of Mr.Varun on 31-
12-2001. Rs.
Rs.
Machinery 4,000 Capital 9,000
Cash at bank 1,000 Sales 12,000
Cash in hand 500 Bank loan 4,000
Wages 1,000 Creditors 4,500
Purchases 8,000 Dividend received 300
Stock on 1-01-2001 6,000
Debtors 4,400
Bills receivable 2,900
Rent 400
Interest on bank loan 50
Commission 250
General expenses 800
Salaries 500
---------- ----------
29800 29800
---------- ----------
Adjustments:
M. Daniel Rajkumar Page 5 of 13

6. 1. Closing stock Rs.8, 000 as on 31-12-2001
2. Wages o/s Rs.100
3. Salaries unpaid Rs.100
4. Rent prepaid Rs.150
5. Commission due Rs.50
6. Interest on bank loan not yet paid Rs.400
Problem 13:
The following Trial Balance was extracted from the books of Mr.X on 31-12-2001.
Particulars Debit Credit
Rs. Rs.
Capital 49,000
Drawings 4,000
General expenses 5,680
Buildings 32,000
Stock on April 32,400
Coal 4,480
Wages 14,400
Taxes & insurance 2,630
Debtors 12,560
Creditors 5,760
Discount 1,100
Loan @ 6% 15,000
Moped vehicle 7,500
Rent 500
Apprentice premium 1,800
Commission received 2,640
Electricity charges 2,810
Bills payable 7700
Cash 160
Bank Overdraft 6,600
Indian Bank Shares 5,000
Sales 1,30,720
Purchases 93,550
Interest on loan 450
2,19,220 2,19,220
Prepare Trading and Profit and loss account for the year ended and balance sheet after giving
effect to the following adjustments:
1. Closing Stock Rs. 47,000.
2. Six months interest due on loan.
3. Insurance premium prepaid Rs. 230.
4. Premium accrued but not yet received Rs.200
5. Commission received in advance Rs. 340.
M. Daniel Rajkumar Page 6 of 13

7. Problem 14:
From the following particulars of Mr.X prepare their Final Accounts.
PARTICULARS Rs. Rs.
Capital 1,30,000
Drawings 1,000
Land 89,600
Cash 1,320
Debtors 15,380
Sales 1,06,040
Opening stock 4,790
Wages 27,480
Carriage inwards 12,310
Bills receivable 4,300
Creditors 42,850
Machinery 76,500
Furniture 3,700
Salaries 23,740
Sales returns 1,340
Carriage outwards 400
Rents and taxes 3,670
Insurance premium 1,000
Stationery 130
Traveling expenses 7,000
Loan from Kumar 45,000
Purchases 36,590
Premises 12,000
Discount allowed 650
Advertisement 570
Postage 680
Purchase returns 1,430
3,25,320 3,25,320
Adjustments:
1. Depreciation to be provided on the following Assets:
Machinery @ 10%
Furniture @20%
Land @ 5%
Premises @2%
2. Taxes unpaid Rs.250
3. Wages overpaid Rs.4350
4. Closing Stock Rs. 7,530.
M. Daniel Rajkumar Page 7 of 13

8. Problem 15:
The following are the balances extracted from the books of Elumalai as on 31/3/2003
Particulars Dr. Cr.
Capital 20,000
Drawings 4,000
Cash in bank 1,700
Sales 16,000
Cash in hand 6,500
Wages 1,000
Purchases 2,000
Stock on 1/4/2000 6,000
Creditors 4,500
Buildings 10,000
Debtors 4,400
Bills receivable 2,900
Rent 450
Commission 250
General exp. 800
Furniture 500
40 , 500 40 , 500
Adjustments:
1. closing stock was valued at Rs. 4000
2. Interest on capital at 6% to be provided.
3. Interest on drawings at 5% to be provided.
4. Wages yet to be paid at Rs.100.
5. Rent prepaid Rs. 50.
Prepare Trading and Profit and Loss account and Balance sheet as on 31/3/2003.
M. Daniel Rajkumar Page 8 of 13

9. Problem 16:
Mr. D’s books show the following balances . Prepare the Final Accounts of his firm.
Particulars Debit (Rs.) Credit (Rs.)
Opening stock 15,000
Purchases 13,000
Sales 30,000
Carriage inwards 200
Salaries 5,000
Printing and stationery 800
Drawings 1,700
Creditors 2,000
Debtors 18,000
Furniture 1,000
Capital 25,000
Postage 750
Interest paid 550
Machinery 4,000
Loan account 3,000
60,000 60,000
Adjustments:
1. Depreciate machinery by 10% and furniture by 5%.
2. Allow interest on capital at 5%.
3. Provide 5% for bad and doubtful debts on debtors
4. Closing stock Rs. 41,000.
Problem 17:
Prepare Final Accounts from the Trial Balance of Siva Agencies as on 31/3/2003
Particulars Debit Credit
Capital 1,00,000
Drawings 1,800
Buildings 15,000
Furniture 7,500
Computer 25,000
Loan from Hari @ 6% 15,000
Interest on loan 900
Sales 1,00,000
Tools 16,100
Purchases 75,000
Opening stock 25,000
General expenses 15,000
Freight outward 2,000
Freight inward 1,000
Commission received 7,500
Debtors 28,000
Bank 20,200
Creditors 10,000
2,32,500 2,32,500
Adjustments:
M. Daniel Rajkumar Page 9 of 13

10. 1. Closing Stock Rs. 32,000
2. Depreciate computer @ 10% ; buildings @ 5% and furniture @ 10%.
3. Provide 5% for bad debts and 2% for discount on debtors.
4. Provide interest on drawings @ 6% and capital at 8%.
Problem 18:
Below given is the Trial Balance of S ltd.,
DEBIT Rs. CREDIT Rs.
Premises 1,50,000 Capital 1,80,000
Plant 45,000 Creditors 25,000
Wages 20,000 Sales 2,25,000
Opening stock 78,000 Discount recd 2,500
Debtors 50,000 Dividend income 1,500
Carriage inwards 1,500 Commission earned 7,100
Carriage outwards 900 Misc, income 2,700
Factory expenses 7,500 Loan 30,000
Oil,gas and services 1,500 Provision for
Purchases 75,000 reserves 200
Factory rent 6,500
Discount allowed 2,900
Office rent 4,000
Insurance 2,000
Office expenses 6,000
Drawings 3,000
Salaries 12,000
Income tax 1,900
Cash in bank 6,000
Tools 300
4,74,000 4,74,000
Adjustments:
1. Closing Stock valued at Rs. 1,00,000.
2. Depreciate Plant at 10 % and Premises at 10%.
3. Provide for bad and doubtful debts at 5% and 2% for discount on debtors.
4. Provide Interest on drawings at 5% and Interest on capital at 10% .
Prepare Final Accounts.
M. Daniel Rajkumar Page 10 of 13

11. Problem 19:
From the following balances prepare the Trading and Profit Loss Account.
Capital 75,000 Sales 75,000
Cash 44,000 Carriage 2,400
Wages 11,000 Debtors 25,000
Rent 1,500 Creditors 11,600
Opening stock 12,000 Sales returns 1,800
Insurance 4,600 Purchase returns 1,500
Machinery 12,000 Bills receivable 5,600
Purchases 50,000 Dividend 6,800
ADJUSTMENTS:
1. Closing Stock valued at Rs. 14,000.
2. Write off Rs. 1,000 as bad debts; provide 5% for bad and doubtful debts. Make provision
for discount on debtors at 2%.
3. Provision for discount on creditors at 2%.
4. Wages prepaid Rs. 1000/-
5. Insurance outstanding Rs.400.
Problem 20:
The Trial Balance of Shri. M & Co. as on 31st March 2001 was as under:
Particulars Rs. Rs.
Capital 1,80,000
Drawings 3,200
Opening stock 9,000
Purchases 64,500
Sales 1,19,000
Sales returns 2,000
Wages 16,000
Insurance 1,500
Duty paid on purchases 10,000
Packing expenses 2,000
Carriage outwards 8,000
Postage 100
Advertisement 1,000
Bad debts 300
Discount received 500
Bills payable 9,000
Bank overdraft 3,000
Land 90,000
Plant 70,000
Furniture 1,000
Debtors 25,400
Creditors 42,000
Cash 40,500
Good will 9,000
3,53,500 3,53,500
M. Daniel Rajkumar Page 11 of 13

12. Adjustments:
1. Closing Stock was valued at Rs. 21,600.
2. Interst on bank overdraft was unpaid for Rs. 275.
3. Half yearly insurance was prepaid.
4. Depreciate land @ 10 % and plant at 20%.
5. Write off further bad debts Rs. 400 and make provisions for bad and doubtful debts @
5% on debtors.
6. Wages outstanding Rs. 500.
7. Interest on capital charged at 10%.
8. Provide 10% as discount on creditors.
9. Advet. Bill of Rs. 700 was still pending.
10. Depreciate Furniture at 10%.
Problem 21:
From the following Trail Balance prepare the Final Accounts.
TRIAL BALANCE
DEBIT Rs. CREDIT Rs.
Cash in hand 1,100 Capital 75,000
Purchases 1,00,000 Bank loan 10,500
Opening stock 20,000 Bills payable. 9,000
Debtors 40,000 Provision for bad
Air conditioners 15,000 debts 1,200
Computers 20,000 Creditors 22,000
Generators 15,000 Discount earned 1,67,000
Discount allowed 400 800
Bad debts 700
Wages and salaries 24,000
Trade expenses 10,000
Manufacturing
expenses 15,000
Income tax 8,200
Advert. 14,000
Insurance. 2 ,100
2,85,000 2,85,000
Additional information:
1. Closing stock valued at Rs. 40,000
2. Depreciate air conditioner @15% , generator @ 15%, computer @ 5%.
3. Write off bad debts Rs. 1000 and maintain the provision for bad debts @ 5%.
M. Daniel Rajkumar Page 12 of 13

13. Problem 22:
From the following balances prepare the Final accounts.
DEBIT Rs. CREDIT Rs.
Capital 75,000 Sales 75,000
Cash 4,000 Carriage inwards 500
Buildings 40,000 Fuel 1,900
Wages 6,000 Debtors 25,000
Salaries 5,000 Creditors 11,600
Rent 800 Sales returns 1,800
Printing 700 Purchases returns 1,500
Opening stock 12,000 Bill receivable 2,000
Insurance 600 Advertisement 1,600
Machinery 12,000 Dividend 800
Drawings 4,000 Furniture 2,000
Purchases 50,000 Loan 6,000
Additional information:
1. Closing stock valued at Rs. 14000.
2. Provision for creditors at 2%.
3. Write off Rs. 1000 as bad debts and provide 5% for bad debts. Make provision for
discount on debtors at 2%.
M. Daniel Rajkumar Page 13 of 13