1. Trial Balance of Mr. A
as on 31st March 2009
S.No. Particulars L.F. Dr. Cr.
1 Capital 44,100
2 Creditors 6,500
3 Building 35,000
4 Furniture 4,000
5 Debtors 6,100
6 Bad Debts 200
7 Purchases 34,000
8 Sales 54,000
9 Return Outward 1,300
10 Return Inward 1,200
11 Sundry Expenses 12,800
12 Cash 4,100
13 Bank 8,500
105,900 105,900

2. Worksheet
Trial Balance Profit & Loss A/C Balnce Sheet
Account Title
L.F. Dr. Cr. Dr. Cr. Assets Liabilities
Capital 44,100
Creditors 6,500
Building 35,000
Furniture 4,000
Debtors 6,100
Bad Debts 200
Purchases 34,000
Sales 54,000
Return Outward 1,300
Return Inward 1,200
Sundry Expenses 12,800
Cash 4,100
Bank 8,500
105,900 105,900
Profit

3. Worksheet
Trial Balance Profit & Loss A/C Balnce Sheet
Account Title
L.F. Dr. Cr. Dr. Cr. Assets Liabilities
Capital 44,100 44,100
Creditors 6,500 6,500
Building 35,000 35,000
Furniture 4,000 4,000
Debtors 6,100 6,100
Bad Debts 200 200
Purchases 34,000 34,000
Sales 54,000 54,000
Return Outward 1,300 1,300
Return Inward 1,200 1,200
Sundry Expenses 12,800 12,800
Cash 4,100 4,100
Bank 8,500 8,500
105,900 105,900
Profit 7,100 7,100
55,300 55,300 57,700 57,700

4. Trial Balance of Mr. A
as on 31st March 2009
S.No. Particulars L.F. Dr. Cr.
1 Capital 44,100
2 Creditors 6,500
3 Building 35,000
4 Furniture 4,000
5 Debtors 6,100
6 Bad Debts 200
7 Purchases 34,000
8 Sales 54,000
9 Return Outward 1,300
10 Return Inward 1,200
11 Sundry Expenses 12,800
12 Cash 4,100
13 Bank 8,500
105,900 105,900
i Stock in trade was valued at Rs. 11,000.
ii Included in the sundry expenses account are: Prepaid taxes for the next year
for Rs. 400 and a part of the advertisement terrif paid for the first quarter of
the next year amounting to Rs. 600.
iii Building and furniture will be depreciated @5% and 10% respectively.
iv A reserve for bad & doubtful debts will be created @3%
v Rent shown with sundry expenses was outstanding for the month of March 2008
for Rs. 500.

5. Date Particulars LF
i Stock A/C Dr.
To Purchases A/C
( being closing stock valued)
ii Prepaid Taxes A/C Dr.
Prepaid Adverisement A/C Dr.
To Sundry Expenses A/C
(being adjusted for Prepayments)
iii Depreciation A/C Dr.
To Buildings A/C
To Furnitures A/C
(being provided for depreciation)
iv Profit & Loss A/C Dr.
To Provision for bad debts A/C
(being provided for Debtors realisation)
v Sundary Expenses A/C Dr.
To Rent Outstanding A/C
(being adjusted for accrued rent)

6. Workshee
Dr Cr Account Title Trial Balance Adjustments
11,000 Dr. Cr. Dr.
11,000 Capital 44,100
Creditors 6,500
Building 35,000
400 Furniture 4,000
600 Debtors 6,100
1,000 Bad Debts 200
Purchases 34,000
Sales 54,000
2,150 Return Outward 1,300
1,750 Return Inward 1,200
400 Sundry Expenses 12,800 500
Cash 4,100
Bank 8,500
183 105,900 105,900
183 Stock A/C 11,000
Prepaid Taxes A/C 400
Prepaid Advt. A/C 600
500 Depreciation A/C 2,150
500 Profit & Loss A/C 183
Provision for bad Debts A/C
Rent Outstanding A/C
14,833
Profit

7. Worksheet
Adjustments Adj. Trial Balance Profit & Loss A/C Balance Sheet
Cr. Dr. Cr. Dr. Cr. Assets Liabilities
44,100 44,100
6,500 6,500
1,750 33,250 33,250
400 3,600 3,600
6,100 6,100
200 200
11,000 23,000 23,000
54,000 54,000
1,300 1,300
1,200 1,200
1,000 12,300 12,300
4,100 4,100
8,500 8,500
11,000 11,000
400 400
600 600
2,150 2,150
183 183
183 183 183
500 500 500
14,833 106,583 106,583
16,267
39,033 55,300 67,550 67,550

8. Trial Balance of Mr. A Date
as on 31st March 2009
S.No. Particulars L.F. Dr. Cr. i
1 Purchases 15,000 ii
2 Debtors 20,000
3 Interest earned 400
4 Salaries 3,000 iii
5 Sales 32,100
6 Purchase Returns 500
7 Wages 2,000
8 Rent 1,500 iv
9 Sales Returns 1,000
10 Bad Debts 700
11 Creditors 12,000
12 Capital 10,000 v
13 Drawings 2,400
14 Provision for Bad Debts 600
15 Printing & Stationery 800
16 Insurance 1,200 vi
17 Opening Stock 5,000
18 Office Expenses 1,200
19 Furniture & Fittings 2,000
20 Provision for Depreciation 200 vii
55,800 55,800
i Depreciate Furniture & Fittings by 10% on Original Cost
ii Make a provision for bad debts equal to 5% of Debtors viii
iii Salaries for the month of March amounting to Rs. 300 were unpaid which must be provided for.
iv The balance in the Salaries Account include Rs. 200 paid in advance.
v Insurance is prepaid to the extent of Rs. 200
vi Provide Rs. 800 for Office Expenses.
vii Stock worth Rs. 600 was put by A to his personal use, the cost of which has not been adjusted.
viii Closing Stock was valued at Rs. 6,000.

10. Particulars LF Dr Cr
Profit & Loss A/C 600
To Provision for Depreciation 200 Account Title
To Provision for Doubtful Debts 400
Purchases
(being provided for Dep. & bad debts) Debtors
Salaries A/C 300 Interest earned
To Salaries Outstanding A/C 300 Salaries
Sales
(being salaries unpaid for March) Purchase Returns
Salaries Prepaid A/C 200 Wages
To Salaries A/C 200 Rent
Sales Returns
(being salaries paid in advance) Bad Debts
Insurance Prepaid A/C 200 Creditors
To Insurance A/C 200 Capital
Drawings
(being insurance prepaid) Provision for Bad Debts
Office Expenses A/C 800 Printing & Stationery
To Provision for office expenses 800 Insurance
Opening Stock
(being provided for Office expenses) Office Expenses
Drawings A/C 600 Furniture & Fittings
To Purchases A/C 600 Provision for Depreciation
(being goods used by the proprietor) Profit & Loss A/C
Stock A/C 6,000 Salaries Outstanding A/C
To Trading A/C 6,000 Salaries Prepaid A/C
Insurance Prepaid A/C
(being closing stock valued) Provision for office expenses
Closing Stock A/C
Trading A/C

11. Profit

12. Worksheet
Trial Balance Adjustments Adj. Trial Balance Profit & Loss A/C Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Assets Liabilities
15,000 600 14,400 14,400
20,000 20,000 20,000
400 400 400
3,000 300 200 3,100 3,100
32,100 32,100 32,100
500 500 500
2,000 2,000 2,000
1,500 1,500 1,500
1,000 1,000 1,000
700 700 700
12,000 12,000 12,000
10,000 10,000 10,000
2,400 600 3,000 3,000
600 400 1,000 1,000
800 800 800
1,200 200 1,000 1,000
5,000 5,000 5,000
1,200 800 2,000 2,000
2,000 2,000 2,000
200 200 400 400
55,800 55,800
600 600 600
300 300 300
200 200 200
200 200 200
800 800 800
6,000 6,000 6,000
6,000 6,000 6,000
8,700 8,700 63,500 63,500

13. 6,900 6,900
39,000 39,000 31,400 31,400

14. Trading and Profit & Loss A/C
for the year ending 31 Mar. 08
Particulars Amount Particulars Amount
Opening stock 5,000 Sales 32,100
Purchases 14,400 Purchase Return 500
wages 2,000 Closing Stock 6,000
Sales Return 1,000
Gross Profit 16,200
38,600 38,600
Salaries 3,100 Gross Profit 16,200
Office Expenses 2,000 Interest 400
Rent 1,500
Insurance 1,000
Printing & Stationery 800
Bad Debts 700
Provision for Bad Debt 400
Provision for depreciation 200
Net Profit 6,900
16,600 16,600
Net Profit 6,900

15. Trial Balance of Mr. A
as on 31st March 2009
S.No. Particulars L.F. Dr. Cr.
1 Purchases 15,000
2 Debtors 20,000
3 Interest earned 400
4 Salaries 3,000
5 Sales 32,100
6 Purchase Returns 500
7 Wages 2,000
8 Rent 1,500
9 Sales Returns 1,000
10 Bad Debts 700
11 Creditors 12,000
12 Capital 10,000
13 Drawings 2,400
14 Provision for Bad Debts 600
15 Printing & Stationery 800
16 Insurance 1,200
17 Opening Stock 5,000
18 Office Expenses 1,200
19 Furniture & Fittings 2,000
20 Provision for Depreciation 200
55,800 55,800
i Depreciate Furniture & Fittings by 10% on Original Cost
ii Make a provision for bad debts equal to 5% of Debtors
iii Salaries for the month of March amounting to Rs. 300 were unpaid which must be provided for.
iv The balance in the Salaries Account include Rs. 200 paid in advance.
v Insurance is prepaid to the extent of Rs. 200
vi Provide Rs. 800 for Office Expenses.
vii Stock worth Rs. 600 was put by A to his personal use, the cost of which has not been adjusted.
viii Closing Stock was valued at Rs. 6,000.

16. Date Particulars LF Dr Cr
Profit & Loss A/C 600
i To Provision for Depreciation 200
ii To Provision for Doubtful Debts 400
(being provided for Dep. & bad debts)
iii Salaries A/C 300
To Salaries Outstanding A/C 300
(being salaries unpaid for March)
iv Salaries Prepaid A/C 200
To Salaries A/C 200
(being salaries paid in advance)
v Insurance Prepaid A/C 200
To Insurance A/C 200
(being insurance prepaid)
vi Office Expenses A/C 800
To Provision for office expenses 800
(being provided for Office expenses)
vii Drawings A/C 600
To Purchases A/C 600
(being goods used by the proprietor)
viii Stock A/C 6,000
To Trading A/C 6,000
(being closing stock valued)

17. Trading and Profit & Loss A/C
for the year ending 31 Mar. 08
Particulars Amount Particulars Amount
Opening stock 5,000 Sales 32,100
Purchases 14,400 Purchase Return 500
wages 2,000 Closing Stock 6,000
Sales Return 1,000
Gross Profit 16,200
38,600 38,600
Salaries 3,100 Gross Profit 16,200
Office Expenses 2,000 Interest 400
Rent 1,500
Insurance 1,000
Printing & Stationery 800
Bad Debts 700
Provision for Bad Debt 400
Provision for depreciation 200
Net Profit 6,900
16,600 16,600
Net Profit 6,900

18. 3/31/2009 3/31/2008 Profit & Loss Statement
Liabilities for the year ending 31-03-09
Equity Share Capital 60,000 50,000 Profit before tax
Profit & Loss A/c 5,000 4,000 Taxation
Creditors 4,000 2,500 Profit after tax
Taxation 1,500 1,000 Proposed dividend
Proposed Dividend 2,000 1,000 Profit Retained
72,500 58,500
Assets
Land 10,000 10,000 Additional Information :
Furniture 17,000 11,000
Vehicles 12,500 8,000 Depreciation for the year
Short-term Investments 2,000 1,000 Disposals
Stock 17,000 14,000 Proceeds on disposal
Debtors 8,000 6,000 Written down value
Bank & Cash 6,000 8,500 Profit on disposal
72,500 58,500

19. oss Statement Cash Flow Statement
ending 31-03-09 for the year ending 31-03-2009
4,500 cash flow from operations
1,500 Net profit before taxation 4,500
3,000 Ajustment for
2,000 Depreciation 3,500
1,000 Profit on sale of Vehicle 700
operating profit before WC changes 7,300
increase in Debtors 2,000
increase in Inventories 3,000
Furniture Vehicles increase in Creditors 1,500
1,000 2,500 cash generated from operations 3,800
Income tax paid 1,000
1,700 Net cash inflow from operations 2,800
1,000 Cash flow from investing activities
700 sale of vehicles 1,700
purchase of vehicles 8,000
purchase of furnitures 7,000
Net cash outflow from investing activities 13,300
Cash flow from financing activities
issue of share capital 10,000
dividend paid 1,000
Net cash inflow from financing activities 9,000
Net decrease in cash & cash eq. 1,500
Cash & cash eq. at the beginning 9,500
Cash & cash eq. at the end 8,500

20. Comaparative Balance Sheet
as on 31st March …
Liabilities 2008 2009 Assets 2008 2009
Share Capital 315,000 465,000 Plant 505,000 715,000
Reserves & Surplus 132,000 140,000 Less: Accumulated Dep. 68,000 103,000
Bonds 245,000 295,000 437,000 612,000
Current Liabilities Long Term Investments 127,000 115,000
Account Payable 43,000 50,000 Current Assets
Accrued Liabilities 9,000 12,000 Inventory 110,000 144,000
Income Tax Payable 5,000 3,000 Account Receivable 55,000 47,000
Cash 15,000 46,000
Prepaid Expenses 5,000 1,000
749,000 965,000 749,000 965,000
Analysis of selected accounts & transactions during 2008-09:
1 Investment purchased for Rs. 78,000.
2 Investments costing Rs. 90,000 sold for Rs. 102,000.
3 Plant purchased for Rs. 120,000.
4 Plant costing Rs. 10,000 with accumulated depreciation of Rs. 2,000 was sold for Rs. 5,000.
5 Bonds with face value of Rs. 100,000 was issued in exchange of Plant bought on 31st Mar. 09
6 Repaid Rs. 50,000 of bonds at face value at maturity.
7 Issued 15,000 shares of Rs. 10 each.
8 Paid cash dividends Rs. 8,000.

21. Profit & Loss Account
for the year ending on 31st March 2009
Cost of goods sold 520,000 Sales 698,000
Gross Profit 178,000
698,000 698,000
Depreciation 37,000 Gross Profit 178,000
Adminstration expenses 110,000 Interest received 6,000
Interest paid 23,000 Gain on sale of Investment 12,000
Loss on sale of Plant 3,000
Income tax 7,000
Net Profit 16,000
196,000 196,000
N
C
C

22. Cash Flow Statement
for the year ending 31-03-2009
cash flow from operations
Net profit before taxation 23,000
Ajustment for:
Depreciation 37,000
Profit on sale of Investments 12,000
Loss on sale of Plant 3,000
Interest paid 23,000
Interest received 6,000
operating profit before WC changes 68,000
decrease in account receivables 8,000
increase in Inventories 34,000
decrease in prepaid expenses 4,000
increase in account payable 7,000
increase in accrued liabilities 3,000
cash generated from operations 56,000
Income tax paid 9,000
Net cash inflow from operations 47,000
Cash flow from investing activities
sale of Plant 5,000
purchase of Plant 120,000
purchase of Investments 78,000
sale of Investments 102,000
Interest received 6,000
Net cash outflow from investing activities 85,000
Cash flow from financing activities
issue of share capital 150,000
Repayment of bond 50,000
Interest paid 23,000
dividend paid 8,000
Net cash inflow from financing activities 69,000
Net increase in cash & cash eq. 31,000
Cash & cash eq. at the beginning 15,000
Cash & cash eq. at the end 46,000