On 31 st March, 2024 the trial balance of Mr. Robin was as follows: Particulars Debit (₹) Particulars Credit (₹) Stock on 1/4/2023 Sundry Creditors…

CA Foundation · Accounting · RTP · January 2025
On 31 st March, 2024 the trial balance of Mr. Robin was as follows: Particulars Debit (₹) Particulars Credit (₹) Stock on 1/4/2023 Sundry Creditors 4,50,000 Raw Materials 6,30,000 Bills Payables 2,25,000 Work-in-Progress 2,85,000 Sale of scrap 75,000 Finished Goods 4,65,000 Commission received 13,500 Sundry Debtors 7,20,000 Provision for doubtful debts 49,500 Carriages on Purchase 45,000 Capital account 30,00,000 Bills Receivables 4,50,000 Sales 50,16,000 Wages 3,90,000 Bank overdraft 2,55,000 Salaries 3,00,000 Telephone and Internet Charges 30,000 Repairs to office furniture 10,500 Cash at Bank 5,10,000 Office Furniture 3,00,000 Repairs to Plant 33,000 Purchases 25,50,000 Plant and Machinery 21,00,000 Rent 1,80,000 Lighting 40,500 General Expenses 45,000 90,84,000 90,84,000 The following additional information is available: Stocks on 31 st March, 2024 were: Raw material - 4,86,000 Finished goods - 5,43,000 Work-in-progress - 2,34,000 Salaries and wages unpaid for the year ended 31 st March, 2024 were respectively, 27,000 and - 60,000. Machinery is to be depreciated by 10% and office furniture by - 71/2%. A provision for doubtful debts is to be maintained @1% of sales. Rent is to be charged as to 3/4 to factory and - 1/4 to office. Lighting is to be charged as to 2/3 to factory and - 1/3 to office. Prepare the Manufacturing Account, Trading Account and Profit and Loss Account for the year ended on 31 st March, 2024.

Suggested Answer and Working Notes:

In the books of Mr. Robin Manufacturing Account for the year ended 31st March, 2024 Particulars ₹ Particulars ₹ Raw material consumed: By Closing Stock of Work in Progress 2,34,000 To Opening Stock of Raw Materials 6,30,000 By Sale of Scrap 75,000 Add: Purchases 25,50,000 By Cost of goods Manufactured 35,70,000 Less: Closing Stock 4,86,000 26,94,000 (Transferred to Trading Account) To Opening Stock of WIP 2,85,000 To Wages 3,90,000 Add: Outstanding Wages 60,000 4,50,000 To Carriage on Purchases 45,000 To Repairs to Plant 33,000 To Rent (3/4) 1,35,000 To Lighting (2/3) 27,000 To Depreciation of Plant 2,10,000 38,79,000 38,79,000 Trading Account for the year ended 31st March, 2024 Particulars ₹ Particulars ₹ To Opening Stock of finished goods 4,65,000 By Sales 50,16,000 To Cost of goods transferred from Manufacturing A/c 35,70,000 By Closing Stock 5,43,000 To Gross Profit c/d 15,24,000 55,59,000 55,59,000 Profit and Loss Account for the year ended 31st March, 2024 Particulars ₹ Particulars ₹ To Salaries 3,00,000 By Gross Profit b/d 15,24,000 Add: Outstanding 27,000 3,27,000 By Commission 13,500 To Telephone & Internet Charges 30,000 To Repairs to Furniture 10,500 To Depreciation of furniture 22,500 To Rent (1/4) 45,000 To Lighting (1/3) 13,500 To General Expenses 45,000 To Provision for doubtful Debts: Required (1% of 50,16,00) 50,160 Less: Existing Provision 49,500 660 To Net Profit 10,43,340 15,37,500 15,37,500

Topics: Preparation of Final Accounts of Sole Proprietors

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