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प्रश्न
Pass adjusting entries for the following:
- The closing stock was valued at ₹ 5,000
- Outstanding salaries ₹ 150
- Insurance prepaid ₹ 450
- ₹ 20,000 was received in advance for commission.
- Accrued interest on investments is ₹ 1,000.
उत्तर
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
| a. | Closing stock A/c Dr. To Trading A/c (Closing stock brought into account) |
5,000 | 5,000 | |
| b. | Salaries A/c Dr. To Outstanding salaries A/c (Salaries outstanding adjusted) |
150 | 150 | |
| c. | Prepaid insurance premium A/c Dr. To Insurance premium A/c (Insurance prepaid adjusted) |
450 | 450 | |
| d. | Commision received A/c Dr. To Commission received in advance A/c (Commission received in advance adjusted) |
20,000 | 20,000 | |
| e. | Accrued interest on investment Dr. To Interest on investment A/c (Accrued interest on investment adjusted) |
1,000 | 1,000 |
APPEARS IN
संबंधित प्रश्न
What is outstanding expense?
What is prepaid expense?
On preparing the final accounts of Suresh, the bad debt account has a balance of ₹ 800 and the sundry debtor account has a balance of ₹ 16,000 of which ₹ 1,200 is to be written off as further bad debts. Pass adjusting entry for bad debts. And also show how it would appear in the profit and loss account and balance sheet.
The trial balance of a trader on 31st December 2016 shows debtors as ₹ 50,000.
Adjustments:
- Write off ₹ 1,000 as bad debts
- Provide 5% for doubtful debts
- Provide 2% for discount on debtors
Show how these items will appear in the profit and loss A/c and balance sheet of the trader.
The following are the extracts from the trial balance.
Sundry debtors ₹ 30,000; Bad debts ₹ 5,000
Additional information:
(a) Write off further bad debts ₹ 3,000.
(b) Create 10% provision for bad and doubtful debts.
You are required to pass necessary adjusting entries and show how these items will appear in the profit and loss account and balance sheet.
The following are the extracts from the trial balance.
| Particulars | Debit ₹ | Credit ₹ |
| Sundry debtors | 50,000 | |
| Provision for doubtful debts | 5,000 | |
| Bad debts | 3,000 |
Additional information:
(a) Additional bad debts ₹ 3,000.
(b) Keep a provision for bad and doubtful debts @ 10% on sundry debtors.
You are required to pass necessary adjusting entries and show how these items will appear in the profit and loss account and balance sheet.
From the trial balance of Sumathi and the adjustments prepare the trading and profit and loss account for the year ended 31st March, 2016, and a balance sheet as on that date.
| Particulars | Debit ₹ | Credit ₹ |
| Stock on April 1, 2015 | 900 | |
| Purchases | 2,000 | |
| Sales | 4,000 | |
| 10% Loan | 2,000 | |
| Carriage on purchases | 200 | |
| Rent from tenant | 250 | |
| Interest on loan | 100 | |
| Machinery | 400 | |
| Postage | 100 | |
| Salary | 650 | |
| Commission received | 200 | |
| Cash in hand | 75 | |
| Furniture | 4,000 | |
| Capital | 1,975 | |
| 8,425 | 8,425 |
Adjustments
(a) Six months interest on the loan is outstanding.
(b) Two months rent is due from the tenant, the monthly rent being ₹ 25.
(c) Salary for the month of March 2016, ₹ 75 is unpaid.
(d) Stock in hand on March 31, 2016, was valued at ₹ 1,030.
The following trial balance was extracted from the books of Arun Traders as of 31st March 2018.
| Particulars | Debit | Credit |
| Buildings | 17,500 | |
| Plant and machinery | 12,000 | |
| Cash purchases | 30,000 | |
| Credit purchases | 8,500 | |
| Sales | 63,250 | |
| Bills receivable | 6,750 | |
| Coal and water | 1,625 | |
| Office expenses | 5,250 | |
| Rent received | 1,750 | |
| Carriage outwards | 2,875 | |
| Repairs and maintenance | 500 | |
| Wages | 9,250 | |
| Debtors and creditors | 9,000 | 8,500 |
| Cash | 2,000 | |
| Capital | 44,750 | |
| Opening stock | 13,000 | |
| 1,18,250 | 1,18,250 |
Prepare trading and profit and loss account for the year ending 31st March, 2018 and balance sheet as on that date after considering the following:
- Depreciate Plant and machinery @ 20%
- Wages outstanding amounts to ₹ 750.
- Half of the repairs and maintenance paid is for the next year.
- Closing stock was valued at ₹ 15,000.
From the following trial balance of Ramesh as of 31st March 2017, prepare the trading and profit and loss account and the balance sheet as of that date,
| Particulars | Debit ₹ | Credit ₹ |
| Stock (01.04.2016) | 40,000 | |
| Purchases | 85,000 | |
| Sales | 1,90,000 | |
| Sundry creditors | 48,000 | |
| Furniture and fixtures | 65,000 | |
| Debtors | 45,000 | |
| Cash at bank | 21,000 | |
| Wages | 37,500 | |
| Drawings | 15,000 | |
| Telephone charges | 3,000 | |
| Bad debts | 2,000 | |
| Provision for bad debts | 2,500 | |
| Discount received | 3,000 | |
| Capital | 85,000 | |
| Advertising | 15,000 | |
| 3,28,500 | 3,28,500 |
Adjustments:
- The closing stock was valued at ₹ 35,000
- Unexpired advertising ₹ 250
- Provision for bad and doubtful debts is to be increased to ₹ 3,000
- Provide 2% for discount on debtors.
Following are the ledger balances of Devi as on 31st December, 2016.
| Debit balance | ₹ | Credit balance | ₹ |
| Purchases | 35,000 | Goodwill | 40,000 |
| Salaries | 11,750 | Sundry debtors | 20,500 |
| Drawings | 4,500 | Furniture | 31,000 |
| Opening Stock | 6,250 | General expenses | 3,250 |
| Capital | 50,000 | Commission received | 2,750 |
| Sales | 78,500 | Loan | 44,000 |
| Carriage inwards | 21,800 | Cash at bank | 3,100 |
| Bad debts | 600 | Provision for bad debts | 2,500 |
Prepare trading and profit and loss account for the year ended 31st December, 2016 and balance sheet as on that date.
- Stock on 31st December, 2016 ₹ 5,800.
- Write off bad debts ₹ 500.
- Make a provision for bad debts @ 5%.
- Provide for discount on debtors @ 2%.
