Q. No.

Prepare the Dec, 31 adjusting entries from the following information.

The company's inventory of office supplies on Nov 30 was Rs 2,850. The company
a bought supplies costing Rs 4,710 in December. The inventory of office supplies on
Dec 31 totalled Rs 1,930.
b The company paid rent for six months at Rs 2,500 per month in advance on Dec 1
and charged it to prepaid rent.
c The company had not paid the December salary of Rs 4,900 at the month end.

d On December 9, a customer paid in advance of Rs 9,300 for future services. The

company provided services worth Rs 7,100 to the customer in December.
e The company made a three year bank deposit of Rs 20,000 on Dec 1. The deposit
carried interest at 12 per cent per annum.

The company bought equipment costing Rs 13,000 on November 1. The equipment

f had an estimated useful life of 10 years, at the end of which it was expected to fetch
Rs 1,000.
g Income tax payable for the year is estimated at Rs 2,100.
Q. No. 2

Leisure Centre Ltd was set up on July, 1, 20XX. Its trial balance as on July, 31, 20XX is given below.

Accounts Dr Cr The following additional information available:

Swimming Pool 12,000
a
Tennis Court 9,600
Supplies 3,280 b

c
Trade receivables 2,910
Cash 940 d
Prepaid Insurance 1,200 e

f
Trade Payables 1,290
g
Unearned Revenue 2,100
Share Capital 15,000
Dividends 800
Revenue from Services 15,540
Salaries Expenses 2,910
Telephone Expenses 290
Total 33,930 33,930
s on July, 31, 20XX is given below.

The following additional information available:

The Swimming Pool has an estimated life of five years and Tennis Court has
an estimated life of eight years. Neither has any scrap value.
The inventory of supplies on July 31 is Rs 1,190.
Subscription revenue of Rs 1,200 is due from members who have been
admitted on a provisional basis
Unearned subscription includes an amount of Rs 300 for July
Staff salaries for the last week totalling Rs 1,290 have not been paid.
The local electricity company sent a bill for Rs 280 for July after the close of
month's transactions.
Insurance premium of Rs 1,200 was paid on a one year policy effective from
July 1.

Prepare Worksheet, Income Statement and Balance Sheet.

 Accounts Dr Cr Adj Dr Adj Cr Net Dr Net Cr
Swimming Pool 12,000 12000
Tennis Court 9,600 9600
Supplies 3,280 2090 1,190
Trade receivables 2,910 1200 4,110
Cash 940 940
Prepaid Insurance 1,200 100 1100
Trade Payables 1,290 1290
Unearned Revenue 2,100 300 1800
Share Capital 15,000 15000
Dividends 800 800
Revenue from Services 15,540 1500 17,040
Salaries Expenses 2,910 1290 4,200
Telephone Expenses 290 290
Total 33,930 33,930
Depreciation 300 300
Accumulated Dep,SP 200 200
Accumulated Dep, TC 100 100
Supplies Expenses 2090 2090
Salaries Expenses payable 1290 1290
Electricity Expenses 280 280
Electricity Expenses payable 280 280
Insurance Expenses 100 100
Total 37000 37000
Q. No. 3

Computer Centre was set up on April, 1, 2008. Its trial balance as on 31, Mar, 2009 is given under

Accounts Dr Cr The following additional information available

Buildings 20,000

a
Computers 18,000
Supplies 3,210 b
Trade Receivables 2,960 c
Cash 1,190 d
Prepaid Insurance 4,800 e
Trade payables 4,200 f
g
Bills Payable 2,600
h
Unearned Revenue 1,900
Share Capital 30,000
Dividends 2,000
Revenue from services 24,060
Salaries Expenses 9,400
Electricity Expenses 910
Telephone Expenses 290
Total 62,760 62,760
nce as on 31, Mar, 2009 is given under

The following additional information available:

The building was acquired on April, 1, 2008 and has an estimated life of 10 years.
Two computers were bought on May 1, 2008 at a cost of Rs 9,000 each and are
expected to be useful for three years.
The inventory of supplies on March 31 is Rs 650.
Fee revenue of Rs 3,100 is due from students for March.
Unearned revenue includes fees of Rs 1,600 for March.
Salaries of instructors for March totalling Rs 1,100 have not been paid.
The telephone bill for March has not been received and is estimated to be Rs 80.
Insurance premium of Rs 4,800 was paid on October 1, 2008 for a one year policy
effective from that date.
The bills payable account represents a three month bill for Rs 2,600 given to a
supplier on Feb, 1, 2009. It carries an interest at 12 % per annum.

Prepare Worksheet, Income Statement and Balance Sheet.

 Accounts Dr Cr Adj Dr Adj Cr Net Dr Net Cr
Buildings 20,000 20000
Computers 18,000 18000
Supplies 3,210 2560 650
Trade Receivables 2,960 3100 6,060
Cash 1,190 1190
Prepaid Insurance 4,800 2400 2400
Trade payables 4,200 4200
Bills Payable 2,600 52 2652
Unearned Revenue 1,900 1600 300
Share Capital 30,000 30000
Dividends 2,000 2000
Revenue from services 24,060 4700 28,760
Salaries Expenses 9,400 1100 10,500
Electricity Expenses 910 910
Telephone Expenses 290 80 370
Total 62,760 62,760
Depreciation 7500 7500
Acc Dep, Buildings 2000 2000
Acc Dep, Computers 5500 5500
Supplies Expenses 2560 2560
Salaries expenses payable 1100 1100
Telephone Expenses payable 80 80
Insurance Expenses 2400 2400
Interest Expenses 52 52
Total 74592 74592
Total Assets 40800
Liabilities 8332
Owner's Equity 32468
PAT 4468
Q. No. 4

Business Services Ltd was set up on Jan, 1, 20XX. Its trial balance as on 31, Jan, 20XX given below.

Accounts Dr Cr The following additional information available:

Buildings 15,000

a
Office Equipment 12,000
Office supplies 2,140 b
Trade Receivables 1,640 c
Cash 630 d
Prepaid Rent 3,600 e

f
Trade payables 1,020
Unearned Revenue 1,600 g
Share capital 20,000
Dividends 1,000
Revenue from services 16,870
Salaries Expenses 3,100
Electricity Expenses 380
Total 39,490 39,490
al balance as on 31, Jan, 20XX given below.

The following additional information available:

The building is expected to be useful for 10 years and the office equipment has an estimated useful
life of four years. None of these assets are expected to have any salvage value.
The inventory of Office supplies on jan, 31 is Rs 970.
Services for Rs 900 were provided to customers in January although no bills have been raised.
Services of Rs 720 were provided to customers who had made full advance payments.
Salaries of staff for the second fortnight totalling Rs 3,100 have not been paid.
The telephone company sent a bill for Rs 480 for January after the close of the month's
transactions.
The company paid six months' rent as advance on January 1.

Prepare Worksheet, Income Statement and Balance Sheet.

 Accounts Dr Cr
Buildings 15,000
Office Equipment 12,000
Office supplies 2,140
Trade Receivables 1,640
Cash 630
Prepaid Rent 3,600
Trade payables 1,020
Unearned Revenue 1,600
Share capital 20,000
Dividends 1,000
Revenue from services 16,870
Salaries Expenses 3,100
Electricity Expenses 380
Total 39,490 39,490

Adj TB 44345
NP 9285
Assets 33765
Q. No. 5

The Trial Balance of Navin Packaging as on Dec, 31, 2005 is given below.

Accounts Dr Cr The following additional information available:

Packaging Equipment 30000
Acc Dep, Packaging Equipment 9000 a
Office Equipment 10000 b
Acc Dep, Office Equipment 3000 c
Packaging supplies 6280 d
Office supplies 2650 e
Trade receivables 2170 f

Cash 8820 g
Prepaid Rent 9600 h
Bills payable 2500 i
Trade payables 1360 j
Unearned Revenue 1800 k
Share Capital 35000 l
Retained Earnings 1350
Dividends 2500
Revenue from services 41260
Salaries Expenses 14910
Electricity Expenses 2340
Advertisement Expenses 4800
Telephone Expenses 1200
Total 95270 95270
The following additional information available:

Estimated depreciation on packaging equipment Rs 3,000

Estimated depreciation on Office equipment Rs 1,000
Inventory of Packaging supplies Rs 2,360
Inventory of office supplies Rs 1,190
Prepaid rent includes rent for january to march 2006 at Rs 840 per month
Accrued interest on the bills payable at 15% per annum from Sep, 1, 2005.
Services provided to clients that had been paid for in advance but
not taken as revenue Rs 1,040.
Unbilled revenue Rs 1,390.
Unpaid salaries Rs 970.
Prepaid advertisement Rs 400
Unpaid telephone expenses Rs 200
Estimated Income tax expenses Rs 1,600.

Prepare Worksheet, Income Statement and Balance Sheet.

 Accounts Dr Cr
Packaging Equipment 30000
Acc Dep, Packaging Equipment 9000
Office Equipment 10000
Acc Dep, Office Equipment 3000
Packaging supplies 6280
Office supplies 2650
Trade receivables 2170
Cash 8820
Prepaid Rent 9600
Bills payable 2500
Trade payables 1360
Unearned Revenue 1800
Share Capital 35000
Retained Earnings 1350
Dividends 2500
Revenue from services 41260
Salaries Expenses 14910
Electricity Expenses 2340
Advertisement Expenses 4800
Telephone Expenses 1200
Total 95270 95270

Net Profit 1485

Assets 42850
Q. No. 6

Compute the missing figures from the information given below:

Particulars Case 1 Case 2 Case 3 Case 4 Case 5

Sales 79,000 43,700 F 13,900 63,500
Beginning Inventory 2,400 C 8,500 280 9,600
Net Cost of Purchases A 34,700 79,400 14,710 K
Cost of goods available for sale 61,300 35,550 G 14,990 97,000
Ending Inventory 4,700 960 2,300 I L
Cost of goods sold 56,600 D 85,600 14,880 95,000
Gross profit 22,400 E 10,500 -980 M
Operating expenses 16,800 9,470 9,200 J 4,000
Net Profit (Loss) B -360 H -2,700 -35,500
A 58900
B 5600
C 850
D 34590
E 9110
F 96100
G 87900
H 1300
I 110
J 1720
K 87400
L 2000
M -31500
Q. No. 7

The Trial balance of Jain Hardware Mart Ltd as on 31, Jan, 2003 is given below:

Particulars Dr Cr
Store Furniture 15,000 Prepare Worksheet, Income Statement and Balance Sh
Acc Dep, Store Furniture 3,000
Merchandise Inventory 42,900 a Estimated depreciation on store furniture Rs 1,
Office Supplies 3,910 b Ending office supplies inventory Rs 1,640
Trade Receivables 6,200 c Store rent at Rs 600 per month paid on Feb, 1,2
Cash 1,810 d The current insurance policy was taken for one
Prepaid Store Rent 14,400 e Office salaries accrued Rs 400
Prepaid Insurance 1,200 f Estimated income tax Rs 14,000
Trade Payables 4,980 g Ending merchandise inventory Rs 36,400
Share Capital 20,000
Retained Earnings 3,890
Sales 102,380
Sales Returns 980
Sales Discounts 1,610
Purchases 28,340
Purchase Returns 650
Purchase Discounts 870
Freight In 3,960
Office salaries expenses 4,400
Sales salaries expenses 7,200
Advertisement Expenses 1,600
Delivery Expenses 900
Telephone Expenses 760
Insurance Expenses 600
Total 135,770 135,770
e Statement and Balance Sheet from the following information:

tion on store furniture Rs 1,500

es inventory Rs 1,640
per month paid on Feb, 1,2002 for 24 months
ce policy was taken for one year from August, 1, 2002.

ax Rs 14,000
e inventory Rs 36,400
 Particulars Dr Cr Adj Dr Adj Cr Net Dr Net Cr
Store Furniture 15,000 15000
Acc Dep, Store Furniture 3,000 4500
Merchandise Inventory 42,900 42900
Office Supplies 3,910 3,910
Trade Receivables 6,200 6200
Cash 1,810 1810
Prepaid Store Rent 14,400 7200
Prepaid Insurance 1,200 600
Trade Payables 4,980 4980
Share Capital 20,000 20000
Retained Earnings 3,890 3890
Sales 102,380 102380
Sales Returns 980 980
Sales Discounts 1,610 1610
Purchases 28,340 28340
Purchase Returns 650 650
Purchase Discounts 870 870
Freight In 3,960 3960
Office salaries expenses 4,400 4800
Sales salaries expenses 7,200 7200
Advertisement Expenses 1,600 1600
Delivery Expenses 900 900
Telephone Expenses 760 760
Insurance Expenses 600 1200
Total 135,770 135,770
Depreciation 1500
Office supplies expenses 2270
Stores Rent expenses 7200
Office salaries payable 400
Income tax expenses 14000
Income tax payable 14000
Total 153940 151670

Assets Liabilities
SF 15000 Tr Payable 4980
ACC DEP -4500 10500 Off sal pay 400
Off supplies 1640 IT Payable 14000
Trade Rec 6200
Cash 1810
Pre St Rent 7200
Pre Insur 600
Closing Inv 36400

64350 19380
Liabilities OE
Capital 20000
Ret Ear 3890
Profits 21080

44970
Q. No. 8

The Trial balance of Kids Corner Ltd as on 31, Mar, 2004 is given below:
Particulars Dr Cr
Store Equipment 10,000 Prepare Work sheet, Income Statement and Balance Sheet
Acc Dep, Store Equipment 1,500
Office Furniture 12,000 a Estimated depreciation on Store equipment Rs 500
Acc Dep, Office Furniture 1,800 b Estimated depreciation on Office furniture Rs 300
Merchandise Inventory 29,560 c Ending office supplies inventory Rs 590
Office supplies 2,180 d Current insurance policy was taken for one year from April, 1, 200
Trade Receivables 3,400 e Advertisement Expired Rs 1,300
Cash 2,740 f Office salaries accrued Rs 200
Prepaid Insurance 2,400 g Sales commissions accrued Rs 400
Prepaid Advertisement 1,900 h Unpaid stores rent Rs 300
Trade payables 2,380 i Unpaid office rent Rs 200
Share Capital 30,000 j Estimated income tax Rs 4,000
Retained Earnings 1,710 k Ending merchandising inventory Rs 38,710
Dividends 3,000
Sales 88,950
Sales Returns 1,300
Sales discounts 750
Purchases 37,910
Purchases Returns 970
Purchase discounts 190
Freight In 2,950
Office Salaries expenses 2,400
Sales salaries expenses 4,900
Sales commissions expense 3,200
Delivery expenses 500
Telephone expenses 910
Stores rent expenses 3,300
Office rent expenses 2,200
Total 127,500 127,500
and Balance Sheet

ne year from April, 1, 2003

 Particulars Dr Cr
Store Equipment 10,000
Acc Dep, Store Equipment 1,500
Office Furniture 12,000
Acc Dep, Office Furniture 1,800
Merchandise Inventory 29,560
Office supplies 2,180
Trade Receivables 3,400
Cash 2,740
Prepaid Insurance 2,400
Prepaid Advertisement 1,900
Trade payables 2,380
Share Capital 30,000
Retained Earnings 1,710
Dividends 3,000
Sales 88,950
Sales Returns 1,300
Sales discounts 750
Purchases 37,910
Purchases Returns 970
Purchase discounts 190
Freight In 2,950
Office Salaries expenses 2,400
Sales salaries expenses 4,900
Sales commissions expense 3,200
Delivery expenses 500
Telephone expenses 910
Stores rent expenses 3,300
Office rent expenses 2,200
Total 127,500 127,500
Adjusted Trial Balance Total 133,400
Net profit 27,750
OE Total 56,460
Q. No. 9

The Trial balance of Trendy Leather Products Ltd as on 31, Mar, 2007 is given below:
Particulars Dr Cr
Stores Equipment 20,000 Prepare Work sheet, Income Statement and Balance Sheet
Acc Dep, Stores Equipment 2,000
Merchandise Inventory 17,400 a Estimated depreciation on stores equipment Rs 1,000
Office supplies 2,730 b Ending office supplies inventory Rs 390
Trade receivables 9,700 c Stores rent from April, 1, 2006 to September, 30, 2006 was paid
Cash 2,870 and rent for the following 12 month period was paid at Rs 1,000
Prepaid stores rent 12,000 d The current insurance policy was taken for one year from April,
Prepaid Insurance 6,000 e Sales salaries accrued Rs 900
Trade payables 7,580 f Estimated income tax Rs 5,000
Share capital 35,000 g Ending merchandise inventory Rs 23,100
Retained earnings 7,100
Sales 115,760
Sales returns 1,170
Sales discounts 1,030
Purchases 69,230
Purchase returns 1,180
Purchase Discounts 2,150
Freight In 4,200
Office salaries expenses 5,100
Sales salaries expenses 9,600
Advertisement expenses 2,300
Delivery Expenses 1,130
Telephone expenses 910
Store rent expenses 5,400
Total 170,770 170,770
 tatement and Balance Sheet

res equipment Rs 1,000

to September, 30, 2006 was paid at Rs 900 per month

month period was paid at Rs 1,000 per month in Oct, 2006.
was taken for one year from April, 1, 2006.
 Particulars Dr Cr
Stores Equipment 20,000
Acc Dep, Stores Equipment 2,000
Merchandise Inventory 17,400
Office supplies 2,730
Trade receivables 9,700
Cash 2,870
Prepaid stores rent 12,000
Prepaid Insurance 6,000
Trade payables 7,580
Share capital 35,000
Retained earnings 7,100
Sales 115,760
Sales returns 1,170
Sales discounts 1,030
Purchases 69,230
Purchase returns 1,180
Purchase Discounts 2,150
Freight In 4,200
Office salaries expenses 5,100
Sales salaries expenses 9,600
Advertisement expenses 2,300
Delivery Expenses 1,130
Telephone expenses 910
Store rent expenses 5,400
170,770 170,770

Adjusted Trial Balance Total 177,670

Net Profit 3480
Assets 59060
Liabilities 13480
OE 45580
Q. No. 10

The Trial balance of City Garments Ltd as on 31, Aug, 2005 is given below:
Particulars Dr Cr
Store furniture 20,000 Prepare Work sheet, Income Statement and Balance Shee
Acc Dep, Stores furniture 2,000
Merchandise Inventory 17,130 a Estimated depreciation on store furniture Rs 1,000
Office supplies 3,690 b Ending office supplies inventory Rs 730
Trade receivables 4,900 c Store rent at Rs 300 per month paid on Aug, 1, 2005 f
Cash 2,100 d The current insurance policy was taken for one year f
Prepaid Rent 3,600 e Office salaries accrued Rs 100
Prepaid Insurance 600 f Sales salaries accrued Rs 500
Trade payables 3,900 g Unpaid advertisement Rs 900
Share capital 10,000 h Estimated income tax Rs 9,000
Retained earnings 2,320 i Ending merchandise inventory Rs 23,180.
Dividends 5,000
Sales 95,160
Sales returns 430
Sales discounts 1,280
Purchases 43,750
Purchase returns 90
Purchase discounts 1,440
Freight in 3,100
Office salaries expenses 1,100
Sales salaries expenses 4,300
Delivery expenses 860
Telephone expenses 320
Stores rent expenses 2,750
Total 114,910 114,910
ome Statement and Balance Sheet

tion on store furniture Rs 1,000

es inventory Rs 730
per month paid on Aug, 1, 2005 for the following twelve month period
ce policy was taken for one year from Sep, 1, 2004

e inventory Rs 23,180.
 Particulars Dr Cr
Store furniture 20,000
Acc Dep, Stores furniture 2,000
Merchandise Inventory 17,130
Office supplies 3,690
Trade receivables 4,900
Cash 2,100
Prepaid Rent 3,600
Prepaid Insurance 600
Trade payables 3,900
Share capital 10,000
Retained earnings 2,320
Dividends 5,000
Sales 95,160
Sales returns 430
Sales discounts 1,280
Purchases 43,750
Purchase returns 90
Purchase discounts 1,440
Freight in 3,100
Office salaries expenses 1,100
Sales salaries expenses 4,300
Delivery expenses 860
Telephone expenses 320
Stores rent expenses 2,750
Total 114,910 114,910

Net Profit 29490

Balance Sheet total 36810