Dr.

V Rajesh Kumar
Chanakya University

FINAL ACCOUNTS OF PROFESSIONALS

Problem One (Final Accounts of Doctor)

Following are the Opening Balance Sheet and Receipts & Payments Account of Dr. Janaki
for the financial year 2022-23
Balance Sheet as on 01.04.2022
Particulars Rs. Particulars Rs.
Capital 10,30,000 Furniture 4,00,000
Bank Loan 4,60,000 Motor-car 5,00,000
Outstanding Rent 10,000 Surgical Equipment 2,00,000
Professional books 1,60,000
Cash in hand 80,000
Cash at bank 1,20,000
Outstanding consultation fees 25,000
Pre-paid Insurance 15,000
15,00,000 15,00,000

Receipts and Payments Account for the year ended 31st March 2023
To Balance b/d 80,000 By Rent of clinic 80,000
To Consultation fees By Surgical Equipment 1,00,000
-2020-21 25,000 By Computers 50,000
-2021-22 2,50,000 By Interest on loan 12,000
-2022-23 30,000 By Professional books 15,000
To Visiting fees 1,55,000 By Car 1,20,000
To Interest on Bank Deposit 30,000 By Household expenses 20,000
To Gift from patients 40,000 By Son’s tuition fees 5,000
To Sale of medicines 90,000 By Insurance Premium 28,000
To Loan from Bank 1,50,000 By Purchase of medicines 72,000
By Car expenses 30,000
By Shopping expenses 25,000
By Staff Salary 1,20,000
By Balance c/d 1,73,000
8,50,000 8,50,000

Additional information:
(a) Depreciate Furniture by 10%, Motor-car by 15%, Surgical equipment by 15%, Books
by 40% and computers by 40%.
(b) Rent of clinic outstanding Rs. 20,000.
(c) Insurance prepaid Rs. 8,000
(d) Staff salary outstanding Rs. 30,000
(e) Visiting fees receivable Rs. 20,000

Prepare Income and Expenditure Account and Balance Sheet for the year ending 31st
March 2023

1
Dr. V Rajesh Kumar
Chanakya University

Solution

Books of Dr. Janaki

Income and Expenditure Account for the year ended 31st March 2023

Particulars Rs. Particulars Rs.

2
Dr. V Rajesh Kumar
Chanakya University

Balance Sheet as on 31st March 2023

Liabilities Rs. Assets Rs.

3
Dr. V Rajesh Kumar
Chanakya University

Capital Account

Rs.

4
Dr. V Rajesh Kumar
Chanakya University

Problem Two (Final Accounts of Chartered Accountant)

Shri Narayan Rao, is an eminent chartered accountant and a resident of Bengaluru. His
receipts and payments account for the year ending 31st March, 2023 and Balance Sheet on
01.04.2022 are given below.

Balance Sheet as on 01.04.2022

Particulars Rs. Particulars Rs.
Capital 5,00,000 Computers 95,000
Loan from Wife 2,50,000 Furniture 1,50,000
Outstanding Salaries 21,000 Car 1,20,000
Commission for negotiation Professional books 2,00,000
between parties received in Cash in Hand 1,60,000
advance 14,000 Audit fee receivable 40,000
Prepaid insurance 20,000
7,85,000 7,85,000

Receipts and Payments Account for the year ended 31st March 2023
Particulars Rs. Particulars Rs.
To Balance b/d 1,60,000 By Office Rent 90,000
To Audit fees 5,40,000 By Printing and stationery 20,000
To Examiner’s fees 60,000 By Newspapers and journals 15,000
To Gain on sale of assets 1,40,000 By General expenses 2,00,000
To Income from Investment 50,000 By Subscription to CA Institute 25,000
To commission for negotiation 40,000 By Car expenses 40,000
By Professional books (annual) 60,000
By Laptop and software 50,000
By Electricity and water 10,000
By Telephone expenses 30,000
By Donation to School 50,000
By Household expenses 50,000
By Insurance premium 40,000
By Staff Salaries 1,40,000
By Balance c/d 1,70,000
9,90,000 9,90,000

Additional Information:
(a) Audit fee for the period yet to be received for the year Rs. 2,36,000
(b) Outstanding Rent Rs. 12,000
(c) Salaries include advance salary paid (i.e., salary of 2022-23) to an employee Rs.
15,000,
(d) Depreciate computers & Laptop at 40%, furniture at 10%, Car at 15% and Books at
40%.
(e) 50% of telephone expenses relates to personal use.

5
Dr. V Rajesh Kumar
Chanakya University

Solution

Books of Sri. Narayan Rao

Income and Expenditure Account for the year ended 31st March 2023

Particulars Rs. Particulars Rs.

6
Dr. V Rajesh Kumar
Chanakya University

Balance Sheet as on 31st March 2023

Liabilities Rs. Assets Rs.

7
Dr. V Rajesh Kumar
Chanakya University

Capital Account

Rs.

8
Dr. V Rajesh Kumar
Chanakya University

Problem Three (Final Accounts of Lawyer)

The Balance Sheet of Pradeep Sharma, an advocate as on 31st March 2023 is given below:
Particulars Rs. Particulars Rs.
Capital 2,75,000 Photocopy, Scanning and other
Loan from Friends 75,000 equipment 30,000
Bank overdraft 35,000 Furniture 1,50,000
Outstanding electricity bill 4,000 Professional Books 55,000
Legal fees received in advance 6,000 Laptop & Computers 50,000
Investments 90,000
Cash in hand 10,000
Income from investments
outstanding 3,000
Bar Association Fees paid in
advance 7,000
3,95,000 3,95,000

Particulars Rs. Particulars Rs.

To Balance b/d 10,000 By Staff Salaries 56,000
To Arbitration fees 2,40,000 By Professional Books 18,000
To Legal fees 3,00,000 By Refreshment charges 6,000
To Loan from bank 25,000 By Rent of office 15,000
To Rent from property 45,000 By Telephone charges 18,000
To Interest on bank FD 21,000 By Printing charges 3,000
To Income from Investments 18,000 By Electricity charges 26,000
By Purchase of Car 2,50,000
By Purchase of Computer 50,000
By Car expenses 7,000
By Subscription to magazines 10,000
By Investments in Shares 14,000
By Bar Association fees 2,000
By Balance c/d 1,84,000
6,59,000 6,59,000

Additional information:
a) Depreciation on car 15%, Computer 40% and Books 40%, equipment15%, Furniture
10%
b) 25% of telephone expenses relate to personal use
c) Half of electric charges are for house property
d) Gifts from clients Rs. 10,000 not included in the above account
e) Outstanding salaries for the year Rs. 4,000.
f) Income from investments yet to be received Rs. 5,000.
g) 50% of ‘subscription to magazines’ belongs to next financial year.

9
Dr. V Rajesh Kumar
Chanakya University

Solution

Books of Sri. Pradeep Sharma

Income and Expenditure Account for the year ended 31st March 2023

Particulars Rs. Particulars Rs.

10
Dr. V Rajesh Kumar
Chanakya University

Balance Sheet as on 31st March 2023

Liabilities Rs. Assets Rs.

11
Dr. V Rajesh Kumar
Chanakya University

Capital Account

Rs.

12