2077/07/27 (12 November, 2020, Thursday)

 Final Account ( Grade 12 NEB) 

Exam 2071 Q.N. 5

The trial balance of a company as on 31^st Chaitra31, 2070, is as under.

Debit		Credit
Particulars	Amount (Rs.)	Particulars	(Rs.)
Opening stock	100,000	Sales	10,00,000
Purchase	500,000	10% debentures	200,000
Fixed assets	400,000	Interest on investment	15,000
Debtors	50,000	Outstanding wages	10,000
Wages	100,000	Creditors	20,000
Salaries	150,000	Profit and loss account	70,000
Rent	60,000	Share capital	300,000
Bad debts	5,000	Commission received	5,000
Interest on debentures	20,000
Carriage	15,000
Custom duty	5,000
Cash	55,000
Investment	150,000
Preliminary expenses	10,000
Total	16,20,000		16,20,000

Additional information:

a.         Closing stock Rs. 1,00,000.

ii.         Bad debt provision to be made at 5%.

iii.       The whole amount of advance commission is earned.

iv.        Write off the preliminary expense fully  Rs. 5,000

v.         Proposed dividend on capital at 10%.

Required: (i) Trading Account                                                 (ii) Profit and Loss Account 

                   (iii) Profit and Loss Appropriation Account        (iv) Balance sheet 

Solution:

                            A Company

                                Trading and Profit & Loss Account

                                    for the year ending 31^st Chaitra

     Dr.                                                                                                                                Cr.

Particulars	Amount	Particulars	Amount
To Opening stock……… To Purchase   …………..   To wages       ………………     To carriage inward ……….     To custom duty ………    To Gross Profit c/d (Cr. - Dr.) …	100,000 500,000  100,000 15,000 5,000 380,000	By Sales ………………  By Closing Stock……	1000,000 100,000
	1100,000		1100,000
To Salaries …………...……. To Rent  …………………. To Bad debts  ….                     To Provision for bad debts* … To Write off preliminary exp. To Interest on debenture ……    To Depreciation on machinery*  To Net Profit c/d (Cr. - Dr.)  ……	150,000 60,000 5,000 2,500 10,000 20,000 40,000 112,500	By Gross profit b/d…… By Commission earned .. By interest on investment	380,000 5,000 15,000
	400,000		400,000

                  Profit and Loss Appropriation a/c as on 31st Chaitra  

      Dr.                                                                                                                              Cr.

Particulars	Amount	Particulars	Amount
To Proposed dividend ……. To Surplus  (Cr. – Dr.) …….	30,000 152,500	By Balance b/d     …. By Net profit b/d ……	112,500 70,000
	182,500		182,500

 Balance Sheet as on 31st Chaitra  

Liabilities	Amount	Assets	Amount
Issued & paid up capital Share capital  …………. Reserve & Surplus Surplus……………… Secured loan 10% debentures ……… Unsecured loan Current liabilities Creditors  ……………… Outstanding wages …… Provision Provision for dividend ….	300,000   152,500   200,000     20,000 10,000   30,000	Fixed assets Fixed assets                400,000 Less: Depreciation      40,000 Investment Investment  …….…… Current assets Debtors                          50,000 Less: Provision for bd   2,500 Cash ……………….. Closing stock ………. Loan and advance Miscellaneous expenditure	360,000   150,000     47,500 55,000 100,000
	712,500		712,500

 

Working note:

1. Provision for bad (It is expense which won’t be paid by debtors)

2. It always is calculated from debtors (like 5% of 50,000 = 2,500)

3. Depreciation ( It means decreases on assets, if assets decreases, it is debited to P/L account)

4. It is calculated from fixed assets ( like 10% of 400,000 = 40,000)

5. The whole amount of advance commission is earned (It means it becomes income, it is credited)

6. Preliminary expenses is fully spent, so it is expense. It goes to debit side of P/L account)

7. Provision for dividend is liability, so it goes to liabilities side of Balance sheet.

8. Provision for dividend is also kept in side of debit in P/L Appropriation account. 

Trading Account  मा डेबिट साइडमा  खरिदसम्बन्धी खर्च जति आउँछ। क्रेडिट साइडमा आम्दानी जस्तै  बिक्री  र  अन्तिम मौज्दात आउँछ। 

Profit and Loss Account  मा डेबिट साइडमा बिक्री, अफिस , सरकारी , सम्पति , ऋण सम्बन्धी खर्च जति आउँछ। क्रेडिट साइडमा  बिक्री, अफिस , सरकारी , सम्पति , ऋणसम्बन्धी आम्दानी आउँछ।  

आसामीबाट उधारोमा बिक्री भएको केही  पैसा नआउने सम्भावना महसुस भएमा  शंकास्पद आसामी को रुपमा खर्च जनाएर छुटाइन्छ। त्यो P/L को डेबिटमा जान्छ।  (जस्तै  5% को  50,000 = 2,500)

 

Debit		Credit
Particulars	Amount (Rs.)	Particulars	(Rs.)
Opening stock	100,000	Sales	10,00,000
Purchase	500,000	10% debentures	200,000
Fixed assets	400,000	Interest on investment	15,000
Debtors	50,000	Outstanding wages	10,000
Wages	100,000	Creditors	20,000
Salaries	150,000	Profit and loss account	70,000
Rent	60,000	Share capital	300,000
Bad debts	5,000	Commission received	5,000
Interest on debentures	20,000
Carriage	15,000
Custom duty	5,000
Cash	55,000
Investment	150,000
Preliminary expenses	10,000
Total	16,20,000		16,20,000

 

 

 

Particulars	Amount	Particulars	Amount
To Opening stock………………….. To Purchase   ………………………..                            To wages       ………………………..                                                      To carriage inward ……………….                   To custom duty …………………                          To Gross Profit c/d (Cr. - Dr.) ……..	100,000 500,000  100,000 15,000 5,000 380,000	By Sales ………………………..                           By Closing Stock………………	1000,000 100,000
	1100,000		1100,000
To Salaries …………………...……. To Rent  ……………………………. To Bad debts  …………………….                               To Provision for bad debts* ……… To Write off preliminary expense... To Interest on debenture ………….         To Depreciation on machinery* …. To Net Profit c/d (Cr. - Dr.)  ……….	150,000 60,000 5,000 2,500 10,000 20,000 40,000 112,500	By Gross profit b/d …………… By Commission earned  ……… By interest on investment …….	380,000 5,000 15,000
	400,000		400,000

                                               

 

  

 

Particulars	Amount	Particulars	Amount
To Proposed dividend ……………. To Surplus  (Cr. – Dr.) …………….	30,000 152,500	By Balance b/d     ……………. By Net profit b/d …………….	112,500 70,000
	182,500		182,500

                                               

 

 

Liabilities	Amount	Assets	Amount
Issued & paid up capital Share capital  ………………………. Reserve & Surplus Surplus………………………………. Secured loan 10% debentures …………………… Unsecured loan Current liabilities Creditors  …………………………… Outstanding wages ………………. Provision Provision for dividend ……….	300,000   152,500   200,000     20,000 10,000   30,000	Fixed assets Fixed assets                      400,000 Less: Depreciation            40,000 Investment Investment  ……………….…… Current assets Debtors                               50,000 Less: Provision for bd        2,500 Cash …………………………….. Closing stock ………………….. Loan and advance Miscellaneous expenditure	360,000   150,000     47,500 55,000 100,000
	712,500		712,500