Chapter 7 · 12 hours
Final Accounts with Adjustments
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Past questions and answers
25 questions set from this chapter, 2 of them more than once. Most repeated first.
- Asked 2 times
- 2082 Grade Increment · 1 mark
- 2078 · 1 mark
How is net profit calculated?
Answer
Net profit is calculated in the Profit and Loss Account: . If expenses exceed the total of gross profit and incomes, the result is a net loss.
Answer checked by Claude Sonnet · Oct 21, 2026
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- Asked 2 times
- 2082 Pre-board · PABSAN · 1 mark
- 2082 Pre-board · PABSON Set B · 1 mark
How are prepaid expenses adjusted in final accounts?
Answer
A prepaid expense is deducted from the related expense on the debit side of the Profit and Loss Account (so only the amount used up is charged), and it is shown as a current asset in the Balance Sheet.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Chaitra · Set A · 8 marks
Following is the trial balance from Laxmi Company for the fiscal year 30 Ashad 2082.
Trial balance
Particulars Debit amount (Rs.) Particulars Credit amount (Rs.) Opening stock 65,000 Capital 6,50,000 Purchase 1,75,000 Sales 3,90,000 Carriage 10,000 Loan 47,000 Salary 33,000 Interest received 42,000 Debtors 56,000 Creditors 15,000 Machinery 7,00,000 Wages 20,000 Bank 40,000 Advertisement 45,000 11,44,000 11,44,000
Additional Information
i. Outstanding wages Rs.5,000
ii. Closing stock Rs.40,000
Required:
- Trading account (2)
- Profit and loss account (3)
- Balance sheet (3)
Similar questions: Final accounts of ABC Company (2082 Grade Increment)
Answer
Laxmi Company
Trading Account
For the year ended 30 Ashad 2082
| Debit Particulars | Amount (Rs.) | Credit Particulars | Amount (Rs.) |
|---|---|---|---|
| Opening stock | 65,000 | Sales | 3,90,000 |
| Purchase | 1,75,000 | Closing stock | 40,000 |
| Carriage | 10,000 | ||
| Wages | 20,000 | ||
| Add: Outstanding wages | 5,000 | ||
| Gross profit c/d | 1,55,000 | ||
| Total | 4,30,000 | Total | 4,30,000 |
Profit and Loss Account
For the year ended 30 Ashad 2082
| Debit Particulars | Amount (Rs.) | Credit Particulars | Amount (Rs.) |
|---|---|---|---|
| Salary | 33,000 | Gross profit b/d | 1,55,000 |
| Advertisement | 45,000 | Interest received | 42,000 |
| Net profit | 1,19,000 | ||
| Total | 1,97,000 | Total | 1,97,000 |
Balance Sheet
As at 30 Ashad 2082
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Capital: | Machinery | 7,00,000 | |
| Opening balance | 6,50,000 | Debtors | 56,000 |
| Add: Net profit | 1,19,000 | Bank | 40,000 |
| 7,69,000 | Closing stock | 40,000 | |
| Loan | 47,000 | ||
| Creditors | 15,000 | ||
| Outstanding wages | 5,000 | ||
| Total | 8,36,000 | Total | 8,36,000 |
Working note:
Gross profit = (Sales + Closing stock) − (Opening stock + Purchase + Carriage + Wages including outstanding)
= (3,90,000 + 40,000) − (65,000 + 1,75,000 + 10,000 + 25,000)
= 4,30,000 − 2,75,000 = Rs. 1,55,000
Net profit = Gross profit + Interest received − Salary − Advertisement
= 1,55,000 + 42,000 − 33,000 − 45,000 = Rs. 1,19,000
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Grade Increment · 2+3+3 marks
The following is the trial balance of ABC Company as on 31st Ashad 2081:
Particulars Debit amount Rs Particulars Credit amount Rs Opening stock 35,000 Loan 50,000 Purchase 70,000 Capital 1,50,000 Wages 8,000 Interest received 5,000 Carriage outward 10,000 Sales 1,63,000 Salary 25,000 Bank 10,000 Furniture 2,00,000 General expenses 10,000 Total 3,68,000 Total 3,68,000
Additional information:
i. Closing stock Rs.35,000
ii. Outstanding wages Rs.5,000
Required:
- Trading account (2)
- Profit and loss account (3)
- Balance sheet (3)
Similar questions: Following is the trial balance from Laxmi (2082 Chaitra · Set A)
Answer
ABC Company Trading Account For the year ended 31st Ashad 2081
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Opening stock | 35,000 | Sales | 1,63,000 |
| Purchase | 70,000 | Closing stock | 35,000 |
| Wages | 8,000 | ||
| Add: Outstanding wages | 5,000 | ||
| Wages (total) | 13,000 | ||
| Gross profit c/d | 80,000 | ||
| Total | 1,98,000 | Total | 1,98,000 |
Profit and Loss Account For the year ended 31st Ashad 2081
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Carriage outward | 10,000 | Gross profit b/d | 80,000 |
| Salary | 25,000 | Interest received | 5,000 |
| General expenses | 10,000 | ||
| Net profit | 40,000 | ||
| Total | 85,000 | Total | 85,000 |
Balance Sheet As at 31st Ashad 2081
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 1,50,000 | Bank | 10,000 |
| Add: Net profit | 40,000 | Furniture | 2,00,000 |
| 1,90,000 | Closing stock | 35,000 | |
| Loan | 50,000 | ||
| Outstanding wages | 5,000 | ||
| Total | 2,45,000 | Total | 2,45,000 |
Working: Gross profit = . Carriage outward is a selling expense, so it is charged in the Profit and Loss Account.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Chaitra · Set A · 1 mark
How is closing stock adjusted in final account at the end of the year?
Answer
It is shown on the credit side of the Trading Account and on the assets side of the Balance Sheet.
Closing stock is valued at cost or net realisable value, whichever is lower. Since it is unsold goods still held at year end, it is credited to the Trading Account (reducing cost of goods sold) and shown as a current asset in the Balance Sheet.
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- 2082 Chaitra · Set B · 2+3+3 marks
The following is the trial balance of B & B Company as on 31st Ashad 2082.
Particulars (Dr.) Debit amount Rs Particulars (Cr.) Credit amount Rs Opening stock 45,000 Sales 4,00,000 Purchase 1,98,000 Discount received 2,000 Carriage 2,000 Capital 1,50,000 Machinery 1,41,000 Creditors 48,000 Cash 14,000 Debtors 1,67,000 Wages 14,000 Insurance 3,000 Salary 16,000 Total 6,00,000 Total 6,00,000
Additional Information
i. Closing stock Rs.40,000
ii. Prepaid salary Rs.1,000
Required:
- Trading account (2)
- Profit and loss account (3)
- Balance sheet (3)
Figure: Trial balance table with debit and credit columns, each totalling Rs 6,00,000.
Answer
B & B Company
Trading Account
For the year ended 31st Ashad 2082
| Particulars (Dr.) | Amount Rs | Particulars (Cr.) | Amount Rs |
|---|---|---|---|
| Opening stock | 45,000 | Sales | 4,00,000 |
| Purchase | 1,98,000 | Closing stock | 40,000 |
| Carriage | 2,000 | ||
| Wages | 14,000 | ||
| Gross profit c/d | 1,81,000 | ||
| Total | 4,40,000 | Total | 4,40,000 |
Profit and Loss Account
For the year ended 31st Ashad 2082
| Particulars (Dr.) | Amount Rs | Particulars (Cr.) | Amount Rs |
|---|---|---|---|
| Insurance | 3,000 | Gross profit b/d | 1,81,000 |
| Salary | 15,000 | Discount received | 2,000 |
| Net profit | 1,65,000 | ||
| Total | 1,83,000 | Total | 1,83,000 |
Balance Sheet
As on 31st Ashad 2082
| Liabilities | Amount Rs | Assets | Amount Rs |
|---|---|---|---|
| Capital | 1,50,000 | Machinery | 1,41,000 |
| Add: Net profit | 1,65,000 | Closing stock | 40,000 |
| 3,15,000 | Debtors | 1,67,000 | |
| Creditors | 48,000 | Cash | 14,000 |
| Prepaid salary | 1,000 | ||
| Total | 3,63,000 | Total | 3,63,000 |
Working note:
Salary shown in P&L A/c = Rs 16,000 − Rs 1,000 prepaid = Rs 15,000.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2081 Chaitra · Set A · 1 mark
How do you adjust closing stock at the end of the year in Balance Sheet?
Answer
It is shown on the assets side of the Balance Sheet under current assets, and credited to the Trading Account (or deducted from purchases) in the final accounts.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2081 Chaitra · Set A · 2+3+3 marks
The following is the trial balance of XYZ Company as on 31st Ashad 2081.
Particulars Debit (Rs) Particulars Credit (Rs) Opening stock 10,000 Creditors 27,500 Purchase 98,500 Capital 70,000 Cash 10,500 Interest received 8,000 Debtors 30,000 Sales 160,000 Insurance 4,500 Furniture 80,000 Salary 25,000 Wages 7,000 Total 265,500 Total 265,500
Additional information:
i. Closing stock Rs 40,000
ii. Depreciation on furniture Rs 8,000
Required:
- Trading account
- Profit and loss account
- Balance sheet
Figure: Trial balance table of XYZ Company, reproduced in the text.
Answer
Trading Account of XYZ Company
For the year ended 31st Ashad 2081
| Particulars | Rs | Particulars | Rs |
|---|---|---|---|
| Opening stock | 10,000 | Sales | 160,000 |
| Purchase | 98,500 | Closing stock | 40,000 |
| Wages | 7,000 | ||
| Gross profit c/d | 84,500 | ||
| Total | 200,000 | Total | 200,000 |
Gross profit = Rs 84,500
Profit and Loss Account of XYZ Company
For the year ended 31st Ashad 2081
| Particulars | Rs | Particulars | Rs |
|---|---|---|---|
| Salary | 25,000 | Gross profit b/d | 84,500 |
| Insurance | 4,500 | Interest received | 8,000 |
| Depreciation on furniture | 8,000 | ||
| Net profit | 55,000 | ||
| Total | 92,500 | Total | 92,500 |
Net profit = Rs 55,000
Balance Sheet of XYZ Company
As on 31st Ashad 2081
| Liabilities | Rs | Assets | Rs |
|---|---|---|---|
| Creditors | 27,500 | Furniture | 80,000 |
| Capital | 70,000 | Less: Depreciation | (8,000) |
| Add: Net profit | 55,000 | Furniture (net) | 72,000 |
| Closing stock | 40,000 | ||
| Debtors | 30,000 | ||
| Cash | 10,500 | ||
| Total | 152,500 | Total | 152,500 |
Hence, the gross profit is Rs 84,500, net profit is Rs 55,000, and the balance sheet total is Rs 152,500.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2081 Chaitra · Set B · 1 mark
In which part does record outstanding house rent in Balance Sheet?
Answer
Outstanding house rent is an expense that has been incurred but not yet paid, so it is a liability of the business. It is shown on the liabilities side of the Balance Sheet under current liabilities (outstanding expenses).
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- 2081 Chaitra · Set B · 8 marks
The Following is the trial balance of XYZ Company as on 31st Ashad 2081.
Trial balance of XYZ Company as on 31st Ashad
Particulars Debit Rs Particulars Credit Rs Opening stock 25,000 Loan 50,000 Purchase 75,000 Capital 100,000 Carriage inward 10,000 Commission received 5,000 Investment 50,000 Sales 130,000 Bank 67,000 Furniture 25,000 Salary 18,000 Carriage outward 15,000 Total 285,000 285,000
Additional Information
i. Closing stock of Rs. 20,000
ii. Outstanding salary of Rs. 2,000
Required:
- Trading account
- Profit and loss account
- Balance sheet
(2+3+3)
Figure: Trial balance table with debit and credit columns as given in the text.
Answer
Trading Account of XYZ Company
For the year ended 31st Ashad 2081
| Dr. Particulars | Amount Rs | Cr. Particulars | Amount Rs |
|---|---|---|---|
| Opening stock | 25,000 | Sales | 130,000 |
| Purchase | 75,000 | Closing stock | 20,000 |
| Carriage inward | 10,000 | ||
| Gross profit c/d | 40,000 | ||
| Total | 150,000 | Total | 150,000 |
Profit and Loss Account of XYZ Company
For the year ended 31st Ashad 2081
| Dr. Particulars | Amount Rs | Cr. Particulars | Amount Rs |
|---|---|---|---|
| Salary | 18,000 | Gross profit b/d | 40,000 |
| Add: Outstanding salary | 2,000 | Commission received | 5,000 |
| 20,000 | |||
| Carriage outward | 15,000 | ||
| Net profit | 10,000 | ||
| Total | 45,000 | Total | 45,000 |
Balance Sheet of XYZ Company
As on 31st Ashad 2081
| Liabilities | Amount Rs | Assets | Amount Rs |
|---|---|---|---|
| Capital | 100,000 | Closing stock | 20,000 |
| Add: Net profit | 10,000 | Investment | 50,000 |
| 110,000 | Bank | 67,000 | |
| Loan | 50,000 | Furniture | 25,000 |
| Outstanding salary | 2,000 | ||
| Total | 162,000 | Total | 162,000 |
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2075 · RE-301 · 1 mark
Which account is prepared before balance sheet?
Answer
The Profit and Loss Account is prepared just before the Balance Sheet (after the Trading Account), because its net profit or net loss has to be carried to the capital in the Balance Sheet.
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- 2074 · RE-301 · 1 mark
Write any two examples of indirect expenses.
Answer
Salary and rent (also advertisement, depreciation, audit fees, or carriage outward).
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- 2078 · 5 marks
Prepare a profit and loss account of Amrit Furniture, Pokhara on the end of Ashadh 2078 from the given transactions.
Particulars Amount Particulars Amount Gross loss 350,000/- Discount received 90,000/- Advertisement 70,000/- Purchase discount 50,000/- Bonus received 60,000/- Audit fee 25,000/- Carriage outward 55,000/-
Answer
Amrit Furniture, Pokhara Profit and Loss Account For the year ended Ashadh 2078
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Gross loss b/d | 3,50,000 | Discount received | 90,000 |
| Advertisement | 70,000 | Purchase discount | 50,000 |
| Carriage outward | 55,000 | Bonus received | 60,000 |
| Audit fee | 25,000 | Net loss (to capital) | 3,00,000 |
| Total | 5,00,000 | Total | 5,00,000 |
Working: Debit side = . Incomes = . Net loss = .
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- 2078 · 5 marks
Prepare a balance sheet of Sunshine Company on the basis of following particulars as on 31st Ashadh 2078.
Particulars Amount Particulars Amount Capital 1,20,000/- Goodwill 16,000/- Vehicles 100,000/- Net profit 7,000/- Creditors 22,000/- Accrued income 10,000/- Closing stock 28,000/- Outstanding salary 5,000/-
Answer
Sunshine Company Balance Sheet As at 31st Ashadh 2078
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 1,20,000 | Goodwill | 16,000 |
| Add: Net profit | 7,000 | Vehicles | 1,00,000 |
| 1,27,000 | Closing stock | 28,000 | |
| Creditors | 22,000 | Accrued income | 10,000 |
| Outstanding salary | 5,000 | ||
| Total | 1,54,000 | Total | 1,54,000 |
Net profit is added to capital; accrued income is a current asset and outstanding salary a current liability.
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- 2075 · RE-301 · 5 marks
Prepare Profit and Loss Account of Surkhet Ghee Industry on the end of Asar 2075 from the given transactions.
Particulars Amount a Gross loss Rs. 2,50,000/- b Interest received Rs. 50,000/- c Purchase received Rs. 20,000/- d Salary Rs. 80,000/- e Commission received Rs. 30,000/- f Carriage outward Rs. 40,000/- g Stationary Rs. 60,000/-
Answer
Surkhet Ghee Industry Profit and Loss Account For the year ended Asar 2075
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Gross loss b/d | 2,50,000 | Interest received | 50,000 |
| Salary | 80,000 | Commission received | 30,000 |
| Carriage outward | 40,000 | Purchase discount received | 20,000 |
| Stationery | 60,000 | Net loss (to capital) | 3,30,000 |
| Total | 4,30,000 | Total | 4,30,000 |
Working: Debit side = . Incomes = . Net loss = .
Note: The item "Purchase received Rs 20,000" is taken as discount received on purchases, an indirect income, since a purchase itself cannot be shown in the Profit and Loss Account.
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- 2075 · RE-301 · 5 marks
Prepare a balance sheet of Ram Furniture on the end of Asar 2075 from the following particulars:
Particulars Amount a Capital Rs. 5,00,000/- b Machinery Rs. 2,00,000/- c Debtors Rs. 1,00,000/- d Reserve fund Rs. 70,000/- e Net profit Rs. 3,00,000/- f Cash balance Rs. 4,00,000/- g Bills payment Rs. 30,000/- h Bills receivable Rs. 2,00,000/-
Answer
Ram Furniture Balance Sheet As at Asar end 2075
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 5,00,000 | Machinery | 2,00,000 |
| Add: Net profit | 3,00,000 | Debtors | 1,00,000 |
| 8,00,000 | Cash balance | 4,00,000 | |
| Reserve fund | 70,000 | Bills receivable | 2,00,000 |
| Bills payable | 30,000 | ||
| Total | 9,00,000 | Total | 9,00,000 |
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- 2074 · RE-301 · 5 marks
Prepare Profit and Loss A/C of Kusum Cosmetics Shop, Kathmandu on the basis of the following particulars as on 31st Asar, 2073:
Particulars Amount Rs. a Gross profit 50,000/- b Income from investment 70,000/- c Interest on loan 15,000/- d Sale of scrap 10,000/- e Audit fees 20,000/- f Rent received 45,000/- g Bad debt 30,000/- h Repairs 15,000/-
Answer
Kusum Cosmetics Shop, Kathmandu Profit and Loss Account For the year ended 31st Asar 2073
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Interest on loan | 15,000 | Gross profit b/d | 50,000 |
| Audit fees | 20,000 | Income from investment | 70,000 |
| Bad debt | 30,000 | Sale of scrap | 10,000 |
| Repairs | 15,000 | Rent received | 45,000 |
| Net profit (to capital) | 95,000 | ||
| Total | 1,75,000 | Total | 1,75,000 |
Working: Credit side = . Expenses = . Net profit = .
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- 2074 · RE-301 · 5 marks
Prepare balance sheet of Karnali Wool House for the fiscal year 2073/074 on the basis of the following particulars.
Particulars Rs. a Capital 11,58,000/- b Bills payable 72,000/- c Goodwill 37,000/- d Furniture 3,25,000/- e Reserve fund 70,000/- f Pre-paid expenses 60,000/- g Net loss 80,000/- h Land 7,98,000/-
Answer
Karnali Wool House Balance Sheet For the fiscal year 2073/074
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 11,58,000 | Goodwill | 37,000 |
| Less: Net loss | (80,000) | Furniture | 3,25,000 |
| 10,78,000 | Land | 7,98,000 | |
| Reserve fund | 70,000 | Prepaid expenses | 60,000 |
| Bills payable | 72,000 | ||
| Total | 12,20,000 | Total | 12,20,000 |
The net loss is deducted from capital.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Pre-board · PABSON Set E · 1 mark
How is drawing adjusted in Balance sheet?
Answer
Drawing is deducted from the capital on the liabilities side of the Balance Sheet, along with the addition of net profit: Capital + Net profit - Drawing.
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- 2082 Pre-board · PABSAN · 2+3+3 marks
Consider the following trial balance of Panchakanya Traders as on 31st Chaitra 2082.
Particulars Debit Rs. Credit Rs. Opening stock 64,000 Purchases 290,000 Freight 10,000 Prepaid salaries 60,000 Printing and stationary 2,000 Wages 30,000 Sales return 6,000 Debtors 44,000 Machinery and tools 22,000 Building 40,000 Office rent 8,000 Selling expenses 9,000 Sales 460,000 Capital 80,000 Creditors 38,000 Purchase return 5,000 Commission received 2,000 Total 5,85,000 5,85,000
Additional information:
i. Prepaid office rent Rs.2000.
ii. Prepaid salaries expired Rs.56,000.
iii. Charge depreciation on machinery and tools @ 7% per annum.
Required:
(a) Trading a/c (2)
(b) Profit and loss account (3)
(c) Balance sheet (3)
Answer
Panchakanya Traders Trading Account For the year ended 31st Chaitra 2082
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Opening stock | 64,000 | Sales | 4,60,000 |
| Purchases | 2,90,000 | Less: Sales return | (6,000) |
| Less: Purchase return | (5,000) | Net sales | 4,54,000 |
| Net purchases | 2,85,000 | ||
| Freight | 10,000 | ||
| Wages | 30,000 | ||
| Gross profit c/d | 65,000 | ||
| Total | 4,54,000 | Total | 4,54,000 |
Profit and Loss Account For the year ended 31st Chaitra 2082
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Salaries (expired) | 56,000 | Gross profit b/d | 65,000 |
| Printing and stationery | 2,000 | Commission received | 2,000 |
| Office rent | 8,000 | Net loss (to capital) | 7,540 |
| Less: Prepaid | (2,000) | ||
| Office rent (net) | 6,000 | ||
| Selling expenses | 9,000 | ||
| Depreciation on machinery and tools | 1,540 | ||
| Total | 74,540 | Total | 74,540 |
Balance Sheet As at 31st Chaitra 2082
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 80,000 | Debtors | 44,000 |
| Less: Net loss | (7,540) | Machinery and tools | 22,000 |
| 72,460 | Less: Depreciation | (1,540) | |
| Creditors | 38,000 | 20,460 | |
| Building | 40,000 | ||
| Prepaid salaries (60,000 - 56,000) | 4,000 | ||
| Prepaid office rent | 2,000 | ||
| Total | 1,10,460 | Total | 1,10,460 |
Working notes:
- Depreciation = .
- No closing stock is given, so it is taken as nil. The Balance Sheet balances on this basis.
- Of the Rs 60,000 prepaid salaries, Rs 56,000 has expired and is charged as expense; the remaining Rs 4,000 stays as a prepaid asset.
- Rs 2,000 of the office rent is prepaid, so only Rs 6,000 is charged this year.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Pre-board · PABSON Set B · 2+3+3 marks
Following is the trial balance extracted from Shusil and Upreti Traders for the fiscal year 30 Ashad 2082.
Particulars Debit Rs Particulars Credit Rs Opening stock 1,80,000 Sales 4,40,000 Purchase 1,75,000 Capital 5,62,000 Depreciation on furniture 4,000 Purchase return 50,000 Wages 42,000 Creditors 22,000 Printing 15,000 Interest 35,000 Salaries 21,000 Loan 23,000 Audit fees 18,000 Rent received 24,000 Bank 41,000 Reserve fund 70,000 Machinery 40,000 Bad debts recovered 10,000 Advertisement 45,000 Building 6,00,000 Carriage 55,000 Total 12,36,000 Total 12,36,000
Adjustments:
a) Outstanding wages Rs. 8,000
b) Closing stock Rs. 90,000
c) Depreciation on machinery 10%
Required:
a) Trading account [2]
b) Profit and loss account [3]
c) Balance sheet [3]
Answer
Shusil and Upreti Traders Trading Account For the year ended 30th Ashad 2082
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Opening stock | 1,80,000 | Sales | 4,40,000 |
| Purchase | 1,75,000 | Closing stock | 90,000 |
| Less: Purchase return | (50,000) | ||
| Net purchase | 1,25,000 | ||
| Wages | 42,000 | ||
| Add: Outstanding wages | 8,000 | ||
| Wages (total) | 50,000 | ||
| Carriage | 55,000 | ||
| Gross profit c/d | 1,20,000 | ||
| Total | 5,30,000 | Total | 5,30,000 |
Profit and Loss Account For the year ended 30th Ashad 2082
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Depreciation on furniture | 4,000 | Gross profit b/d | 1,20,000 |
| Printing | 15,000 | Interest | 35,000 |
| Salaries | 21,000 | Rent received | 24,000 |
| Audit fees | 18,000 | Bad debts recovered | 10,000 |
| Advertisement | 45,000 | ||
| Depreciation on machinery | 4,000 | ||
| Net profit | 82,000 | ||
| Total | 1,89,000 | Total | 1,89,000 |
Balance Sheet As at 30th Ashad 2082
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 5,62,000 | Bank | 41,000 |
| Add: Net profit | 82,000 | Machinery | 40,000 |
| 6,44,000 | Less: Depreciation | (4,000) | |
| Reserve fund | 70,000 | 36,000 | |
| Loan | 23,000 | Building | 6,00,000 |
| Creditors | 22,000 | Closing stock | 90,000 |
| Outstanding wages | 8,000 | ||
| Total | 7,67,000 | Total | 7,67,000 |
Working: Depreciation on machinery = . "Carriage" is taken as carriage inward (a direct expense). The Rs 4,000 depreciation on furniture is already in the trial balance, so it is charged only in the Profit and Loss Account.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Pre-board · PABSON Set E · 2+3+3 marks
Following is the trial balance of K & K Store as on 31st December 2024.
Particulars Debit Rs Credit Rs Capital 200,000 Land 131,000 Creditor 30,000 Sales 200,000 Purchase 150,000 Opening stock 50,000 Carriage 30,000 Wages 4,000 Prepaid insurance 2,000 Investment 35,000 Advance commission received 13,000 Salary 61,000 Loan 20,000 Total 463,000 463,000
Additional information:
ka) Closing stock Rs. 50,000.
kha) Outstanding salaries Rs. 2,000.
ga) Prepaid insurance expired Rs. 1,500.
Required:
i) Trading account (2)
ii) Profit and loss account (3)
iii) Balance sheet (3)
Answer
K & K Store Trading Account For the year ended 31st December 2024
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Opening stock | 50,000 | Sales | 2,00,000 |
| Purchase | 1,50,000 | Closing stock | 50,000 |
| Carriage | 30,000 | ||
| Wages | 4,000 | ||
| Gross profit c/d | 16,000 | ||
| Total | 2,50,000 | Total | 2,50,000 |
Profit and Loss Account For the year ended 31st December 2024
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Salary | 61,000 | Gross profit b/d | 16,000 |
| Add: Outstanding salary | 2,000 | Net loss (to capital) | 48,500 |
| Salary (total) | 63,000 | ||
| Insurance expired | 1,500 | ||
| Total | 64,500 | Total | 64,500 |
Balance Sheet As at 31st December 2024
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 2,00,000 | Land | 1,31,000 |
| Less: Net loss | (48,500) | Investment | 35,000 |
| 1,51,500 | Closing stock | 50,000 | |
| Loan | 20,000 | Prepaid insurance (2,000 - 1,500) | 500 |
| Creditor | 30,000 | ||
| Advance commission received | 13,000 | ||
| Outstanding salary | 2,000 | ||
| Total | 2,16,500 | Total | 2,16,500 |
Working: Advance commission received is income of a future period, so it is a liability, not an income of this year. Since expenses exceed gross profit, the business has a net loss of Rs 48,500.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Preparatory · PABSON · 8 marks
Trial balance of Ramesh Company as on 31st Chaitra 2081 is given below:
Particulars Debit Rs Credit Rs Opening stock 2,00,000 Capital 4,00,000 Purchases 8,00,000 Sales 13,00,000 Sales returns 20,000 Creditors 50,000 Freight on purchase 15,000 Debtors 1,00,000 Advertising 10,000 Salary 1,50,000 Wages 70,000 Furniture 1,00,000 House rent 80,000 Loan 2,00,000 Interest on loan 10,000 Bank balance 3,90,000 Advance salary 10,000 Insurance 25,000 Discount received 30,000 Total 19,80,000 19,80,000
Additional information:
a) Closing stock Rs 3,25,000
b) Outstanding wages Rs 20,000
c) Interest on loan due Rs 10,000
Required:
a) Trading account
b) Profit and loss account
c) Balance sheet as on 31st Chaitra
Answer
Ramesh Company Trading Account For the year ended 31st Chaitra 2081
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Opening stock | 2,00,000 | Sales | 13,00,000 |
| Purchases | 8,00,000 | Less: Sales returns | (20,000) |
| Freight on purchase | 15,000 | Net sales | 12,80,000 |
| Wages | 70,000 | Closing stock | 3,25,000 |
| Add: Outstanding wages | 20,000 | ||
| Wages (total) | 90,000 | ||
| Gross profit c/d | 5,00,000 | ||
| Total | 16,05,000 | Total | 16,05,000 |
Profit and Loss Account For the year ended 31st Chaitra 2081
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| Advertising | 10,000 | Gross profit b/d | 5,00,000 |
| Salary | 1,50,000 | Discount received | 30,000 |
| House rent | 80,000 | ||
| Interest on loan | 10,000 | ||
| Add: Due | 10,000 | ||
| Interest (total) | 20,000 | ||
| Insurance | 25,000 | ||
| Net profit | 2,45,000 | ||
| Total | 5,30,000 | Total | 5,30,000 |
Balance Sheet As at 31st Chaitra 2081
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital | 4,00,000 | Bank balance | 3,90,000 |
| Add: Net profit | 2,45,000 | Debtors | 1,00,000 |
| 6,45,000 | Furniture | 1,00,000 | |
| Loan | 2,00,000 | Advance salary | 10,000 |
| Creditors | 50,000 | Closing stock | 3,25,000 |
| Outstanding wages | 20,000 | ||
| Outstanding interest on loan | 10,000 | ||
| Total | 9,25,000 | Total | 9,25,000 |
Check: Gross profit = . Net profit = .
Answer checked by Claude Sonnet · Oct 21, 2026
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- CDC Model Question, Office Operation and Accountancy · 1 mark
How do you record outstanding salary expenses at the end of a year in the final accounts?
Answer
By debiting Salary A/c and crediting Outstanding Salary A/c
Outstanding salary is an expense relating to the current year but not yet paid. So it is recorded by debiting the Salary A/c (added to salary on the debit side of the Trading/P&L A/c) and crediting the Outstanding Salary A/c, which appears as a current liability in the Balance Sheet.
Answer checked by Claude Sonnet · Oct 21, 2026
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- CDC Model Question, Office Operation and Accountancy · 8 marks
Following are the particulars extracted from the books of a trader for the year ended 30 Chaitra 2080.
Particulars Debit (Rs.) Credit (Rs.) Opening stock 20,000 Carriage 30,000 Furniture 50,000 Purchase 2,00,000 Debtors 1,20,000 Capital 2,60,000 Creditors 50,000 Wages 60,000 General expenses 20,000 Salary 30,000 Insurance 70,000 General reserve 25,000 Bank loans 40,000 Sales 2,25,000 Total 6,00,000 6,00,000
Additional information:
(a) Closing stock Rs. 35,000
(b) Outstanding salary Rs. 5,000
(c) Depreciation on furniture @ 10%
Required: Trading account, Profit and loss account, Balance sheet (2+3+3)
Figure: Trial balance table of the trader (included in text).
Answer
Trading Account of the trader
For the year ended 30 Chaitra 2080
| Particulars | Rs. | Particulars | Rs. |
|---|---|---|---|
| To Opening stock | 20,000 | By Sales | 2,25,000 |
| To Purchases | 2,00,000 | By Closing stock | 35,000 |
| To Carriage | 30,000 | By Gross loss c/d | 50,000 |
| To Wages | 60,000 | ||
| Total | 3,10,000 | Total | 3,10,000 |
Profit and Loss Account
For the year ended 30 Chaitra 2080
| Particulars | Rs. | Particulars | Rs. |
|---|---|---|---|
| To Gross loss b/d | 50,000 | By Net loss transferred to Capital | 1,80,000 |
| To Salary | 30,000 | ||
| To Outstanding salary | 5,000 | ||
| To General expenses | 20,000 | ||
| To Insurance | 70,000 | ||
| To Depreciation on furniture | 5,000 | ||
| Total | 1,80,000 | Total | 1,80,000 |
Balance Sheet
As at 30 Chaitra 2080
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital | 2,60,000 | Furniture | 50,000 |
| Less: Net loss | (1,80,000) | Less: Depreciation | (5,000) |
| Adjusted capital | 80,000 | 45,000 | |
| General reserve | 25,000 | Closing stock | 35,000 |
| Bank loans | 40,000 | Debtors | 1,20,000 |
| Creditors | 50,000 | ||
| Outstanding salary | 5,000 | ||
| Total | 2,00,000 | Total | 2,00,000 |
Working note:
Depreciation on furniture = 10% of Rs. 50,000 = Rs. 5,000.
Answer checked by Claude Sonnet · Oct 21, 2026
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Questions from SEE 2082 Office Operation and Accountancy, RE-3011'A' (Board exam, Chaitra 2082 (scan); Set A is pages 1-6 of the combined PDF), SEE 2082 Office Operation and Accountancy, RE-3011'B' (Board exam, Chaitra 2082 (scan); Set B is pages 7-12 of the combined PDF), SEE 2081 Office Operation and Accountancy, RE-3011'A' (Board exam, 2081 (scan)), SEE 2081 Office Operation and Accountancy, RE-3011'B' (Board exam, 2081 (scan)), CDC Model Question, Office Operation and Accountancy (CDC model paper, 5 images (_-_1 to _-_5)), SEE Grade Increment 2082 (2026) Office Operation and Accountancy, GI-3011 (Board exam (Grade Increment), 2082; six page scans, bilingual, 75 marks), SEE 2078 (2022) Optional II Office Operation and Accountancy (Board exam, 2078, old course (2 h 15 m, 5x1 + 8x5 + 3x10); four page scans. The page calls it a model; edusanjal lists the same paper as the SEE 2078 past paper. Only questions that fit the current outline are taken), SEE 2075 (2019) Optional II Office Management and Account, RE-301 (Board exam, 2075, old course (2 h 15 m); typed text plus table image. Only questions that fit the current outline are taken), SEE 2074 (2018) Optional II Office Management and Account, RE-301 (Board exam, 2074, old course (2 h 15 m); typed text plus table image. Only questions that fit the current outline are taken), CDC model question (Auditing, 75 marks, 2 h 15 m) (CDC model paper for the Auditing subject (earlier course), posted as an 'Account 2080' model; only the questions that fit the current Accountancy outline are taken), PABSAN SEE Pre-Board 2082 Office Practice and Accountancy (Pre-board exam of the National Private and Boarding Schools' Association Nepal (PABSAN), 2082; six page scans), PABSON SEE Pre-Board 2082 Office Practice and Accounting, Set B (3011'B') (Pre-board exam of PABSON, 2082-10-29; six page scans), PABSON SEE Pre-Board 2082 Office Management and Account, Set E (3011'E') (Pre-board exam of PABSON, 2082-10-22; seven page scans) and PABSON SEE Preparatory Examination 2082 Office Practice and Accountancy (3011) (Preparatory (pre-board) exam of PABSON, 2082-10-22; six page scans). Answers are written for this site; check them against your class notes.
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