Dr. Trading Account for the year ended ---- Cr.

Particulars Rs. Particulars Rs.

To Opening Stock ----- By sales -----
To Purchase ----- Less : Sales Returns ----- -----
Less : Purchase Returns ----- ----- By Good destroyed by Fire -----
To Factory Rent, Rates and Taxes

By Goods taken over by partner for
personal use
-----
To Wages ----- By Closing Stock -----
To Power and Fuel By Gross Loss c/d -----
To Coal Gas and Water
To Carriage Inward
To Royalties on purchase
To Custom, Octroi and Dock duty -----
To Goss Profit c/d -----
----- -----

Dr. Profit & Loss Account for the year ended --- Cr.
Particulars Rs. Particulars Rs.
To Gross Loss b/d ----- By Gross Profit b/d -----
To Office Rent, Rates & Taxes ----- By Rent, Interest,, Discount,
Commission received
-----
To Printing & Stationery ----- By Sundry Income -----
To Postage & Telegram ----- By Net Loss c/d -----
To Insurance -----
To Legal Expenses -----
To Audit Fees -----
To Travelling Expenses -----
To Advertisement -----
To Carriage Outward -----
To Salesmans Salaries -----
To Royalty on Sales -----
To Discount allowed -----
To Commission paid -----
To Interest on Loans -----
To Depreciation on Fixed Assets -----
To Loss by fire, theft etc. -----
To Loss on sale of asset -----
To General Expenses -----
To Bad Debts -----
To Net Profit c/d -----

----- -----


Balance Sheet as on -------------
Liabilities Rs. Assets Rs.
Capital Accounts :
(of Partners)
----- Land and Building -----
Current Accounts:
(of Partners)
----- Plant and Machinery -----
Loan from Partners ----- Furniture -----
Loan from Banks and Outsiders ----- Goodwill -----
Bank Overdraft ----- Motor Car -----
Reserves ----- Delivery Vans -----
Sundry Creditors ----- Patents -----
Bill Payable ----- Copy Rights -----
Outstanding Expenses ----- Investments -----
Income Received in advance ----- Loans Given -----
Loose Tools -----
Bills Receivable -----
Closing Stock -----
Prepaid Expenses -----
Income Receivable -----
Cash and Bank Balance -----
Sundry Debtors -----
----- -----


Adjustments in Final Accounts
Sr.
No.
Adjustment First Effect Second Effect
1 Closing Stock Trading A/c. Credit side Balance Sheet - Asset
Side
2 Depreciation Profit and Loss A/c
Debt side
Balance Sheet Asset
Side
3 Outstanding Expenses Add to the concerned
expenses
Balance Sheet
Liability Side
4 Income Receivable Add to the concerned
Income
Balance Sheet - Asset
Side
5 Prepaid Expenses Deduct from the
concerned expenses
Balance Sheet - Asset
Side
6 Income received in advance Deduct from the
concerned Income
Balance Sheet
Liability Side
7 Good distributed as free samples Trading A/c Credit
side
Profit and Loss A/c
Debit Side
8 Goods used by the proprietor for personal
use
Trading A/c Credit
Side
Capital OR Current A/c
Debit side
9

Loss of Goods by Fire :
i) If Goods are not insured
destroyed by fire

Trading A/c Credit
Side

Profit and Loss A/c
Debit Side
ii) Fully insured goods are
destroyed by fire &
iii) If only part of the claim has been
admitted by the company
Trading A/c Credit
side
A] Trading A/c Credit
side
B] Profit and Loss A/c
Debit side (Loss)
Balance Sheet Asset
Side (Insurance Claim)

Balance Sheet Asset
Side (Insurance Claim
receivable)



10 Interest on Capital Profit and Loss
Appropriation A/c
Debit side
Capital/ Current A/c
Credit side
11 Interest on Drawings Profit and Loss
Appropriation A/c
Credit side
Capital/ Current A/c
Debit side
12 Salary or Commission payable to a partner Profit and Loss
Appropriation A/c
Debit side
Capital/ Current A/c
Credit side
13 Credit purchase not recorded in the books of
accounts
Trading A/c Debit
side (add to purchase)
Balance sheet
Liability side (add to
Creditors)
14 Credit sales not recorded in the books of
accounts
Trading A/c Credit
Side (add to sales)
Balance sheet
Liability side (add to
Debtors)
15 Writing of further Bad debts Profit and Loss A/c
Debit side (add to Bad
debts)
Balance Sheet Asset
side (Deduct from
Debtors)
16 Provision for Bad and Doubtful debts Profit and Loss A/c
Debit Side
Balance Sheet Asset
side (Deduct from
Debtors the amount of
new reserve)
17 Interest on loan not recorded Profit and Loss A/c
Debit side
Balance Sheet
Liability side (Add to
Loan)
18 Wages paid for installation of Machinery
debited to wages A/c
Trading A/c Debit
side (Deduct from the
amount of wages)
Balance Sheet Asset
side (Add to Machinery







1. Classify the following accounts as Personal, Real or Nominal Accounts.
Sr.
No.
Name of the Accounts Type of
Accounts
Sr.
No.
Name of the Accounts Type of
Accounts
Advertisement A/c Nominal A/c Computer A/c Real A/c
Wages A/c Nominal A/c Debtor A/c Personal A/c
Bank A/c Personal A/c Creditor A/c Personal A/c
Goods A/c Real A/c Loan A/c Personal A/c
Conveyance A/c Nominal A/c Carriage A/c Nominal A/c
Machinery A/c Real A/c Cash A/c Real A/c
Bank of Barodas A/c Personal A/c Life Insurance
Corporation of Indias
A/c
Personal A/c
Vile Parle Kelwani
Mandals A/c
Personal A/c Government of
Maharashtras A/c
Personal A/c
Legal charges A/c Nominal A/c Prepaid Rent A/c Personal A/c
Loss by fire A/c Nominal A/c Bad Debts A/c Nominal A/c
Loss by theft A/c Nominal A/c Cambridge Universitys
A/c
Personal A/c
Livestock A/c Real A/c Insurance Premium A/c Nominal A/c
Loose tools A/c Real A/c Capital A/c Personal A/c
Building A/c Real A/c Rent and Rates A/c Nominal A/c
Audit fees A/c Nominal A/c Shares A/c Real A/c
Investment A/c Real A/c Salaries A/c Nominal A/c
Postage & Telegram A/c Nominal A/c Sales tax A/c Nominal A/c
Repairs to Building A/c Nominal A/c Ever Shine Co-
operative Hsg Soc. A/c
Personal A/c
Advance to Anil A/c Personal A/c Discount A/c Nominal A/c
Printing & Stationery
A/c
Nominal A/c M/s Roopam Fashions
A/c
Personal A/c
Travelling Expenses A/c Nominal A/c Brokerage A/c Nominal A/c
Furniture & Fitting A/c Real A/c Bills Receivable A/c Personal A/c
Depreciation A/c Nominal A/c Insurance claim A/c Personal A/c
Free hold Premises A/c Real A/c Income Receivable A/c Personal A/c
Leasehold Premises A/c Real A/c Income Received in
Advance A/c
Personal A/c
Motor Car A/c Real A/c Sundry Expenses A/c Nominal A/c
Custom Duty A/c Nominal A/c
Profit on sale of
machinery A/c
Nominal A/c
Outstanding wages A/c Personal A/c