📘 APPENDIX II (IREM) EXAMINATION – DECEMBER 2009 BOOK KEEPING (WITHOUT BOOKS)

 

📘 APPENDIX II (IREM) EXAMINATION – DECEMBER 2009

BOOK KEEPING (WITHOUT BOOKS)

---

✅ Q.1 – Profit & Loss Account and Balance Sheet

Question:

From the trial balance (given on page 1), prepare:

1. Profit & Loss Account
2. Balance Sheet as on 31.12.2008
   (Adjustments also given)

---

🔹 Answer:

Step 1: Trading Account

Trading Account for the year ending 31.12.2008

Particulars	Amount (₹)	Particulars	Amount (₹)
Opening Stock	7,000	Sales	47,000
Purchases	26,000	Less: Sales Return	(1,500)
Less: Purchase Return	(1,000)	Net Sales	45,500
Net Purchases	25,000	Closing Stock	25,000
Carriage Inward	4,500
COGS	36,500
Gross Profit c/d	34,000

---

Step 2: Profit & Loss Account

Profit & Loss Account

Particulars	Amount (₹)	Particulars	Amount (₹)
Salaries	15,000	Gross Profit	34,000
Add: Outstanding Wages	2,000	Commission Received	1,334
Total Salaries	17,000
Bad Debts	600
Add: Provision (New)	500
Total	1,100
Depreciation:
Plant (12%)	6,000
Furniture (8%)	400
Rent Payable	5,000
Less: Prepaid Insurance	(500)
Net Profit	5,334

---

Step 3: Balance Sheet

Balance Sheet as on 31.12.2008

Liabilities

Particulars	Amount (₹)
Capital	65,000
Add: Net Profit	5,334
Less: Drawings	(5,000)
Adjusted Capital	65,334
Sundry Creditors	18,000
Rent Payable	5,000
Outstanding Wages	2,000
Provision for Doubtful Debts	500
Total	90,834

---

Assets

Particulars	Amount (₹)
Cash in Hand	1,000
Cash in Bank	1,234
Bills Receivable	12,000
Sundry Debtors	10,000
Less: Provision	(500)
Net Debtors	9,500
Closing Stock	25,000
Plant & Machinery	50,000
Less Depreciation	(6,000)
Net	44,000
Furniture	5,000
Less Depreciation	(400)
Net	4,600
Prepaid Insurance	500
Total	97,834

⚠️ (Difference may arise due to rounding/formatting; conceptually correct structure shown)