Final Accounts Problems and Solutions [AHSEC Class 12 Exam 2022 to 2025 Questions]

📚 Final Accounting Solved Problems (2022-2025)

2025 Final Accounts - Q.18: Arnab and Anvi

Following is the Trial Balance of Arnab and Anvi as on 31st March, 2023:

Particulars	Debit (₹)	Credit (₹)
Salary	16,000
Outstanding Wages		400
Taxes	800
Bad Debts Provision		1,400
General Expenses	1,000
Bills Payable		42,400
Bills Receivable	1,800
Sundry Creditors		13,200
Debtors	42,800
Charity	1,400
Gross Profit (Trading Account)		1,24,600
Investment	30,000
Discount		1,000
Bank Balance	15,000
Commission		400
Cash in hand	600
Machinery	3,00,000
Furniture	8,000
Drawings :
Arnab	12,000
Anvi	8,000
Copyright	10,000
Capital :
Arnab		2,40,000
Anvi		1,60,000
Closing Stock	20,000
Building	1,35,000
Reserve Fund		19,000
Total	6,02,400	6,02,400

Adjustments:

• (i) Partners are entitled to interest on capital at 5% p.a.
• (ii) Transfer 10% of net profits to Reserve Fund.
• (iii) Bad debts provision has to be increased to 5% on Debtors.
• (iv) Interest on Investment accrued ₹500.
• (v) Depreciate Machinery @10%.

Particulars	Amount (₹)	Particulars	Amount (₹)
To Salary	16,000	By Gross Profit b/d	1,24,600
To Taxes	800	By Commission	400
To General Expenses	1,000	By Interest on Investment (Accrued)	500
To Charity	1,400	By Bad Debts Provision (Old)	1,400
To Depreciation on Machinery (3,00,000 x 10%)	30,000	By Discount	1,000
To Bad Debts Provision (New: 42,800 x 5% = 2,140)	2,140
To Net Profit (Transferred to P&L Appropriation A/c)	76,560
Total	1,27,900	Total	1,27,900

Particulars	Amount (₹)	Particulars	Amount (₹)
To Interest on Capital:		By Net Profit b/d	76,560
Arnab (2,40,000 x 5%)	12,000
Anvi (1,60,000 x 5%)	8,000
Total Interest on Capital	20,000
To Transfer to Reserve Fund (10% of Net Profit)	7,656
To Share of Profit (Arnab and Anvi - 1:1 assumed):
Arnab (48,904 x 1/2)	24,452
Anvi (48,904 x 1/2)	24,452
Total Share of Profit	48,904
Total	76,560	Total	76,560

Particulars	Arnab (₹)	Anvi (₹)	Particulars	Arnab (₹)	Anvi (₹)
To Drawings	12,000	8,000	By Balance b/d	2,40,000	1,60,000
To Balance c/d	2,64,452	1,84,452	By Interest on Capital	12,000	8,000
			By P/L Appropriation A/c (Share of Profit)	24,452	24,452
Total	2,76,452	1,92,452	Total	2,76,452	1,92,452

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Machinery (3,00,000 - 30,000 Dep.)	2,70,000
Arnab	2,64,452	Furniture	8,000
Anvi	1,84,452	Building	1,35,000
Total Capital	4,48,904	Copyright	10,000
Outstanding Wages	400	Bills Receivable	1,800
Bills Payable	42,400	Sundry Debtors (42,800 - 2,140 Prov.)	40,660
Sundry Creditors	13,200	Investment (30,000 + 500 Accrued Int.)	30,500
Reserve Fund (19,000 + 7,656 Transfer)	26,656	Bank Balance	15,000
		Cash in hand	600
		Closing Stock	20,000
Total	5,31,560	Total	5,31,560

2024 Final Accounts - Q.18: Biswa and Pradip

The Trial Balance of the firm as on 31st December, 2022 was as under:

Debit	Rs.	Credit	Rs.
Drawings:		Capital:
Biswa	4,000	Biswa	65,000
Pradip	3,000	Pradip	40,000
Cash at Bank	45,000	Sundry Creditors	18,400
Sundry Debtors	40,500	Bank Loan	5,000
Insurance	19,740	Commission	300
Advertisement	9,000	Trading Account (Gross Profit)	57,200
Closing Stock	12,500
Cash in hand	16,300
Commission	5,000
Motor Car	20,860
Machinery	10,000
Total	1,85,900	Total	1,85,900

Adjustments:

• (a) Partners are to share profits and losses in the proportion of 3/5 and 2/5 respectively.
• (b) Write off depreciation @ 10% on Machinery and 20% on Motor Car.
• (c) Create a provision of 5% on Sundry Debtors for Doubtful Debts.
• (d) Partners are entitled to Interest on Capital @ 5% per annum and Pradip is entitled to a salary of Rs. 1,800 per annum.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Insurance	19,740	By Gross Profit b/d	57,200
To Advertisement	9,000	By Commission	300
To Commission	5,000
To Depreciation:
Machinery (10,000 x 10%)	1,000
Motor Car (20,860 x 20%)	4,172
Total Depreciation	5,172
To Provision for Doubtful Debts (40,500 x 5%)	2,025
To Net Profit (Transferred to P&L Appropriation A/c)	16,563
Total	57,500	Total	57,500

Particulars	Amount (Dr.)	Particulars	Amount (Cr.)
To Interest on Capital:		By Net Profit b/d	16,563
Biswa (65,000 x 5%)	3,250
Pradip (40,000 x 5%)	2,000
Total Interest on Capital	5,250
To Pradip's Salary	1,800
To Share of Profit (Biswa: 3/5, Pradip: 2/5):
(Net Profit - Int. on Cap. - Salary) = (16,563 - 5,250 - 1,800) = 9,513
Biswa (9,513 x 3/5)	5,707.80
Pradip (9,513 x 2/5)	3,805.20
Total Share of Profit	9,513
Total	16,563	Total	16,563

Particulars	Biswa (Rs.)	Pradip (Rs.)	Particulars	Biswa (Rs.)	Pradip (Rs.)
To Drawings	4,000	3,000	By Balance b/d	65,000	40,000
To Balance c/d	69,957.80	44,605.20	By Interest on Capital	3,250	2,000
			By Pradip's Salary	—	1,800
			By P/L Appropriation A/c (Share of Profit)	5,707.80	3,805.20
Total	73,957.80	49,405.20	Total	73,957.80	49,405.20

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital A/c:		Cash at Bank	45,000
Biswa	69,957.80	Sundry Debtors (40,500 - 2,025 Prov.)	38,475
Pradip	44,605.20	Closing Stock	12,500
Total Capital	1,14,563	Cash in hand	16,300
Sundry Creditors	18,400	Motor Car (20,860 - 4,172 Dep.)	16,688
Bank Loan	5,000	Machinery (10,000 - 1,000 Dep.)	9,000
Total	1,37,963	Total	1,37,963

2023 Final Accounts - Q.18: Amit and Aditya

The Trial Balance of the firm as on 31st December, 2022 was as under:

Debit	Rs.	Credit	Rs.
Machinery	35,000	Capital:
Salaries	15,850	Amit	50,000
Carriage outward	2,140	Aditya	30,000
Building	54,000	Trading A/c: Gross Profit	85,700
Furniture	25,000	Creditors	44,560
Debtors	48,200	Bank Loan	21,000
Bad Debts	1,400	Discount	4,500
Cash at Bank	1,200	Commission	1,000
Investment	10,000	Outstanding Wages	1,200
Cash in hand	1,170	Provisions for Doubtful Debts	1,000
Establishment charges	13,000
Closing Stock	10,000
Depreciation on Machinery	3,500
Publicity	5,000
Drawings:
Amit	5,000
Aditya	3,000
Rent and Rates	5,500
Total	2,38,960	Total	2,38,960

Additional Information:

• (1) Prepaid publicity Rs. 500.
• (2) Commission received in advance Rs. 200.
• (3) Provide for doubtful debts @ 5% on Sundry Debtors.
• (4) Allow interest on partner’s capital @ 5% p.a.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Salaries	15,850	By Gross Profit b/d	85,700
To Carriage outward	2,140	By Discount	4,500
To Bad Debts	1,400	By Commission (1,000 - 200 Advance)	800
To Establishment charges	13,000	By Provision for Doubtful Debts (Old)	1,000
To Depreciation on Machinery	3,500
To Publicity (5,000 - 500 Prepaid)	4,500
To Rent and Rates	5,500
To Provision for Doubtful Debts (New: 48,200 x 5% = 2,410)	2,410
To Net Profit (Transferred to P&L Appropriation A/c)	43,700
Total	92,000	Total	92,000

Particulars	Amount (Dr.)	Particulars	Amount (Cr.)
To Interest on Capital:		By Net Profit b/d	43,700
Amit (50,000 x 5%)	2,500
Aditya (30,000 x 5%)	1,500
Total Interest on Capital	4,000
To Share of Profit (Amit: 3/1, Aditya: 1/1 - Ratio 3:1):
(Net Profit - Int. on Cap.) = (43,700 - 4,000) = 39,700
Amit (39,700 x 3/4)	29,775
Aditya (39,700 x 1/4)	9,925
Total Share of Profit	39,700
Total	43,700	Total	43,700

Particulars	Amit (Rs.)	Aditya (Rs.)	Particulars	Amit (Rs.)	Aditya (Rs.)
To Drawings	5,000	3,000	By Balance b/d	50,000	30,000
To Balance c/d	77,275	38,425	By Interest on Capital	2,500	1,500
			By P/L Appropriation A/c (Share of Profit)	29,775	9,925
Total	82,275	41,425	Total	82,275	41,425

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital A/c:		Machinery	35,000
Amit	77,275	Building	54,000
Aditya	38,425	Furniture	25,000
Total Capital	1,15,700	Debtors (48,200 - 2,410 Prov.)	45,790
Creditors	44,560	Cash at Bank	1,200
Bank Loan	21,000	Investment	10,000
Outstanding Wages	1,200	Cash in hand	1,170
Commission Received in Advance	200	Closing Stock	10,000
		Prepaid Publicity	500
Total	1,82,660	Total	1,82,660

2022 Final Accounts - Q.19: Pradeep and Pranab

The Trial Balance of the firm as on 31st March, 2020 was as under:

Debit	(Rs.)	Credit	(Rs.)
Machinery	54,000	Capital:
Goodwill	10,000	Pradeep	50,000
Patent	20,000	Pranab	40,000
Sundry Debtors	21,000	Sundry Creditors	5,000
Cash in hand	1,000	Interest on Investment	400
Closing Stock	25,000	Sundry Receipts	200
Investment	10,000	Bills payable	2,000
Depreciation on Machinery	6,000	Bank Overdraft	10,000
Rent	10,000	Outstanding Wages	500
Carriage Outward	1,000	Trading Account: Gross Profit	71,000
Taxes	500	Discount	900
Telephone charges	3,600
Commission	800
Drawings:
Pradeep	5,000
Pranab	4,000
Salaries	8,000
Bank Charges	100
Total	1,80,000	Total	1,80,000

Additional Information:

• Write off Rs. 1,000 as Bad Debt and provide a 5% Provision on Sundry Debtors for Doubtful Debts.
• Interest on Investment Accrued Rs. 600.
• Interest on Partners’ Capital is allowed @ 5% p.a.
• Create a General Reserve by taking Rs. 5,000 out of profit.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Depreciation on Machinery (from TB)	6,000	By Gross Profit b/d	71,000
To Rent	10,000	By Interest on Investment (400 + 600 Accrued)	1,000
To Carriage Outward	1,000	By Sundry Receipts	200
To Taxes	500	By Discount	900
To Telephone charges	3,600
To Commission	800
To Salaries	8,000
To Bank Charges	100
To Bad Debts (1,000 Write-off)	1,000
To Provision for Doubtful Debts (New: 21,000 x 5% = 1,050)	1,050
To Net Profit (Transferred to P&L Appropriation A/c)	41,050
Total	73,100	Total	73,100

Particulars	Amount (Dr.)	Particulars	Amount (Cr.)
To Interest on Capital:		By Net Profit b/d	41,050
Pradeep (50,000 x 5%)	2,500
Pranab (40,000 x 5%)	2,000
Total Interest on Capital	4,500
To Transfer to General Reserve	5,000
To Share of Profit (Ratio not given, assuming 1:1):
(Net Profit - Int. on Cap. - Reserve) = (41,050 - 4,500 - 5,000) = 31,550
Pradeep (31,550 x 1/2)	15,775
Pranab (31,550 x 1/2)	15,775
Total Share of Profit	31,550
Total	41,050	Total	41,050

Particulars	Pradeep (Rs.)	Pranab (Rs.)	Particulars	Pradeep (Rs.)	Pranab (Rs.)
To Drawings	5,000	4,000	By Balance b/d	50,000	40,000
To Balance c/d	62,800	53,300	By Interest on Capital	2,500	2,000
			By P/L Appropriation A/c (Share of Profit)	15,775	15,775
Total	67,800	59,300	Total	67,800	59,300

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital A/c:		Machinery	54,000
Pradeep	62,800	Goodwill	10,000
Pranab	53,300	Patent	20,000
Total Capital	1,16,100	Sundry Debtors (21,000 - 1,050 Prov.)	19,950
Sundry Creditors	5,000	Cash in hand	1,000
Bills Payable	2,000	Closing Stock	25,000
Bank Overdraft	10,000	Investment	10,000
Outstanding Wages	500	Add: Accrued Interest on Investment	600
General Reserve	5,000		10,600
		Cash at Bank	1,200
Total	1,38,600	Total	1,38,600

Conclusion

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