Oman College of Management and Technology,
Department of Administrative and Financial Sciences:
Specialized Financial Accounting (203301)
Chapter- 3
Exercises:
1. Mr. Ahmed could not keep complete record. He furnishes you the following
information for the year 2010:
Details
1.1.2010 (RO)
31-12-2010 (RO)
Stock in trade
37,400
46,800
Sundry debtors
24,000
28,000
Sundry creditors
18,000
3,000
Bills Receivable
8,000
10,000
Bills Payable
2,000
400
Furniture and Fixtures
1,200
1,200
24,000
24,000
8,700
1,600 (Cr.)
Buildings
Bank Balance
Additional information:
(a) Additional capital introduced : RO. 5,000;
(b) Drawings amounted to RO. 15,000;
(c) A provision @ 10% is required for doubtful debts and depreciation @ 5% p.a. is
to be written-off for furniture and fixtures and buildings;
(d) RO. 6,000 is outstanding for wages and RO. 2,400 for salaries, prepaid insurance
amounted to RO.400 outstanding legal expenses are RO. 1,400.
From the above particulars, find out the profit or loss of Mr. Ahmed by statement of
affairs method.
2. A small trader does not maintain proper books of accounts. His assets and liabilities
were as under:
Details
31.1.2010 (RO)
Cash
31-12-2011 (RO)
100
90
Sundry Debtors
3,900
4,500
Stock
3,400
3,200
Plant and Machinery
6,000
8,000
Sundry creditors
1,500
1,490
Bills Payable
-------
500
During the year, he introduced RO. 1,000 as new capital. He withdrew RO. 300 every
month for his household expenses. Ascertain his profit.
3. A retailer had not kept proper books of accounts, but from the following details, you
are required to ascertain the profit or loss for the year ended 30th June 2002 and also
to prepare his statement of affairs as at that date:
Details
1.7.2001 (RO)
30-6-2002 (RO)
Stock-in-trade
16,700
18,100
Sundry creditors
15,400
19,200
Sundry debtors
11,200
10,600
250
1,400
Bank overdraft
19,200
Nil
Bills receivable
16,000
5,000
Fixtures and Fittings
1,500
1,500
Motor Van
1,900
Nil
Nil
2,900
Cash in hand
Bank Balance
The drawings during the year amounted to RO. 2,400. Depreciate fixtures and fittings
by 10%. RO.600 is irrecoverable from debtors. Provide 5% provision for doubtful
debts and a provision of RO. 200 in respect of bills receivable.
4. Hilal does not maintain proper books of account. From the following particulars,
prepare trading and profit and loss account for the year ended 31st December, 2011
and the balance sheet as on that date:
Details
31.12.2010 (RO)
31-12-2011 (RO)
Debtors
9,000
12,500
Stock
4,900
6,600
Furniture
500
750
Creditors
3,000
2,250
Analysis of other transactions:
Cash collected from the debtors
30,400
Cash paid to creditors
22,000
Salaries
6,000
Rent
750
Office expenses
900
Drawings
1,500
Additional capital introduced
1,000
Cash sales
Cash purchases
750
2,500
Discount received
350
Discount allowed
150
Returns inward
500
Returns outward
400
Bad debts
100
He had RO. 2,500 as cash balance at the beginning of the year.