Final Acc-Numericals

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					Illustration 1: From the following details, prepare a Manufacturing and a Trading Account for the year ending 31st December 1998: Stock on 1.1.1998: Rs Raw Materials 10,000 Work-in-process 5,000 Finished goods 20,000 Stock on 31.12.1998 Rs Raw Materials 5,000 Work-in-process 15,000 Finished goods 30,000 Purchase of Raw Materials 50,000 Direct Wages 10,000 Carriage Charges on Purchase of raw materials 5,000 Factory Power 5,000 Depreciation on Factory Machines 5,000 Purchase on Finished Goods 30,000 Cartage paid on Finished Goods purchased 2,000

Solution:
Manufacturing Account for the year ending 31.12.1998
PARTICULARS RS PARTICULARS RS

To Work-in-process as on By Work-in-process on 31.12.1998 1.1.1998 5,000 By Cost of Production transferred To Raw Materials consumed to Trading Account Stock on 1.1.1998 10,000 Add: Purchases 50,000 60,000 Less: Closing Stock 5,000 55,000 To Direct Wags 10,000 To Carriage Charges 5,000 To Factory Power 5,000 To Depreciation on Factory 5,000 Machines 85,000

15,000 70,000

85,000

Trading Account for the year ending 31.12.1998
Particulars To Stock of Finished Goods on 1.1.1998 To Cost of Prod. of finished goods (transferred from Mfg.Account) To Purchase of Finished Goods To Cartage on Finished Goods Purchased Rs 20,000 Particulars By Stock of Finished Goods on 31.12.1998 By Sale of Finished Gods Rs 30,000 1,00,000

70,000 30,000 2,000

To Gross profit transferred to Profit and Loss A/c

8,000 1,30,000 1,30,000

Tutorial Note:
Students may further note following points:  It is customary to give a separate heading to the Manufacturing Account as shown above. However, the Trading and Profit and Loss Account are not given separate headings. There will be a common heading for the both these accounts.  If in an examination question, a Manufacturing Account is not separately asked, the examinees may show all item relating to the Manufacturing Account in the Trading Account itself. However, it will be advisable to prepare a Manufacturing Account.  In case of Joint Stock Companies, the heading given is only “ Profit and Loss Account for the year ending…”, and not Trading and profit and Loss Account. However, the amount of Gross profit and Net Profit may be calculated separately.

Illustration 2 :
From the following balance extracted from the books of M/s Rajendra Kumar Gupta & Co., prepare a Trading and Profit and Loss Account and a Balance Sheet. Particulars Plant and Machinery Return Outwards Cash in hand Salaries Debtors Discount (Dr.) Bills Receivable Wages Return Inwards Bank Overdraft Purchases Petty Cash in hand Bad Debts The value of stock on 31 st December, 1998 was Rs 3,700. Particulars Opening Stock Sales Depreciation Commission (Cr.) Insurance Carriage Inwards Furniture Printing Charges Carriage Outwards Capital Creditors Bills Payable Rs 1,250 11,800 667 211 380 300 670 481 200 9,228 1,780 541 Rs 6,230 1,380 895 750 1,905 328 2,730 1,589 1,659 4,000 8,679 47 180

Solution:
Particulars

Trading And Profit & Loss Account for the year ending 31 st Dec., 1998
Rs Particulars Rs

To opening stock To Purchase 8,679 Less: Returns O/ward 1,380 To Wages To Carriage Inward To Gross Profit c/d To Depreciation To Insurance To Printing Charges To Carriage Outwards To Salaries To Discount To Bad Debts To Net Profit

1,250 By Sales Less: Return Inwards 7,299 1,589 Closing Stock 300 3,403 13,841 667 By Gross Profit b/d 380 By Commission 481 200 750 328 180 628 3,614

11,800 1,659 10,141 3,700

13,841 3,403 211

3,614

Balance Sheet As on 31 st December, 1998

Liabilities Bills payable Creditors Bank Overdraft Capital Add: Net profit

Rs 541 1,780 4,000 9,228 628 9,856

Assets Cash Petty cash Bills payable Debtors Closing stock Plant and machinery Furniture

Rs 895 47 2,730 1,905 3,700 6,230 670 16,177

16,177

From the following Trial Balance prepare the Manufacturing Account, Trading and profit and Loss Account for the year ending 31 st March, 1999 and the Balance Sheet as on that date: Particulars Debit Credit Rs Rs Shri Banker’s capital Account 41,000 Shri Banker’s Drawing Account 6,100 Mrs. Banker’s loan Account 4,000 Sundry Creditors 45,000 Cash in hand 250 Cash at Bank 4,000 Sundry Debtors 40,500 Patents 2,000 Plant and Machinery 20,000 Land and Buildings 26,000 Purchases of Raw Materials 35,000 Raw Material : 1.4.1998 3,500 Work-in-process : 1.4.1998 2,000 Finished stock : 1.4.1998 18,000 Carriage Inwards 1,100 Wages 27,000 Salary of Works Manager 5,600 Factory Expenses 3,400 Factory Rent and Taxes 2,500 Royalties (paid on sales) 1,200 Sales (less Returns) 1,23,400 Advertising 3,000 Office Rent and Insurance 4,800 Printing and Stationery 1,000 Office Expenses 5,800 Carriage Outwards 600 Discount 1,400 2,100 Bad Debts 750 2,15,500 2,15,500

Illustration 3:

The Stock on 31 st March, 1999 was as follows: Raw materials Rs 4000; work-in-progress Rs 4,500, finished goods Rs 28,000.

Solution Manufacturing Account For the years ending March 31 st 1999 Rs Particulars 2,000 By Transfer to Trading Account (cost of finished goods produced) 3,500 By Closing Work-in-process 35,000 38,500 4,000 34,500 1,100 27,000 5,600 3,400 2,500 76,100

Particulars To Opening Work-in-process To Raw Materials used: Opening stock Add: Purchases Less: Closing stock To Carriage Inwards To Wages To Salary of Works Manager To Factory Expenses To Factory Rent and Taxes

Rs 71,600 4,500

76,100

Particulars To Opening Stock of finished goods To Manufacturing A/c (Cost of goods produced) To Gross profit c/d

Trading and Profit & Loss Account For the year ending March 31 st 1999 Rs Particulars 18,000 By Sales 71,600 By Closing Stock of finished goods 61,800 1,51,400 1,200 By Gross Profit b/d 3,000 By Discount received 4,800 1,000 5,800 600 750 1,400 45,350 63,900

Rs 1,23,400 28,000

1,51,400 61,800 2,100

To Royalties To Advertising To Office Rent and insurance To printing and Stationary To Office Expenses To Carriage Outwards To Bad Debts To Discount Allowed To Net profit carried to Capital Account

63,900

Liabilities Sundry Creditors Mrs. Banker’s Loan Capital Account: Balance on 1.4.1998 Profit

41,000 45,350 86,350

Balances Sheet as on 31 st March, 1999 Rs Assets 45,000 Current Assets: 4,000 Cash in hand Cash at Bank Sundry Debtors Closing stock: Raw Materials Work-in-process Finished goods

Rs 250 4,000 40,500 4,000 4,500 28,000

36,500 (Contd.)

Liabilities Less: Drawings

Rs 6,100 80,250

Assets Fixed Assets: Patents Plant and Machinery Land and Buildings 2,000

Rs

20,000 26,000 1,29,250

1,29,250


				
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