Advertisements
Advertisements
प्रश्न
What are accrued incomes?
उत्तर
Accrued income is an income or portion of income which has been earned during the current accounting year but not received till the end of that accounting year.
APPEARS IN
संबंधित प्रश्न
What is outstanding expense?
For the fol owing adjustments, pass adjusting entries:
- Outstanding wages ₹ 5,000.
- Depreciate machinery by ₹ 1,000.
- Interest on capital @ 5% (Capital: ₹ 20,000)
- Interest on drawings ₹ 50
- Write off bad debts ₹ 500
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 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.
The following are the extracts from the trial balance.
| Particulars | Debit ₹ | Credit ₹ |
| Sundry debtors | 50,000 | |
| Discount on debtors | 2,000 | |
| Bad debts | 3,000 |
Additional information:
(a) Create a provision for doubtful debts @ 10% on sundry debtors.
(b) Create a provision for discount on debtors @ 5% on sundry debtors.
You are required to pass necessary adjusting entries and show how these items will appear in the final accounts.
Prepare profit and loss account of Manoj for the year ending on 31st March 2016
| Particulars | ₹ | Particulars | ₹ |
| Gross profit | 25,000 | Travelling expenses | 500 |
| Salaries | 5,600 | Stationery | 75 |
| Insurance | 200 | Rent | 650 |
| Discount allowed | 400 | Interest on loan | 225 |
| Discount received | 300 | Repairs | 125 |
| Commission received | 100 | Office expenses | 55 |
| Advertisement | 450 | General expenses | 875 |
| Printing charges | 375 | Postage | 175 |
Adjustments:
(a) Salary outstanding ₹ 400
(b) Rent paid in advance ₹ 50
(c) Commission receivable ₹ 100
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.
Prepare trading and profit and loss account and balance sheet from the following trial balance of Madan as of 31st March 2018.
| Debit balance | ₹ | Credit balance | ₹ |
| Sundry debtors | 61,000 | Capital | 70,000 |
| Plant and machinery | 80,000 | Purchases return | 2,000 |
| Bank charges | 4,200 | Sales | 2,55,000 |
| Wages | 7,000 | Bank overdraft | 77,000 |
| Sales return | 5,000 | ||
| Purchases | 1,52,000 | ||
| Opening stock | 30,000 | ||
| Drawings | 22,000 | ||
| Establishment expenses | 20,000 | ||
| Bad debts | 800 | ||
| Business premises | 22,000 | ||
| 4,04,000 | 4,04,000 |
Adjustments:
- The closing stock was ₹ 80,000
- Provide depreciation on plant and machinery @ 20%
- Write off ₹ 800 as further bad debts
- Provide the doubtful debts @ 5% on sundry debtors.
From the following information prepare trading and profit and loss account and balance sheet of Kumar for the year ending 31st December 2017.
| Debit balance | ₹ | Credit balance | ₹ |
| Purchases | 14,500 | Sales | 20,100 |
| Coal and fuel | 600 | Bills payable | 400 |
| Carriage inwards | 750 | Rent received | 2,500 |
| Advertisement | 500 | Creditors | 2,000 |
| Carriage outwards | 400 | Capital | 5,000 |
| Bank | 1,200 | ||
| Furniture | 8,000 | ||
| Debtors | 2,250 | ||
| Bills receivable | 300 | ||
| Stock on 1st January, 2017 | 1,500 | ||
| 30,000 | 30,000 |
Adjustments:
- The closing stock on 31st December 2017 was valued at ₹ 3,900.
- Carriage inwards prepaid ₹ 250
- Rent received in advance ₹ 100
- Manager is entitled to receive commission @ 5% of net profit after providing such commission.
From the following information, prepare trading and profit and loss account and balance sheet in the books of Sangeetha for the year ending 31st March, 2018.
| Particulars | ₹ | Particulars | ₹ |
| Capital | 20,000 | Salaries | 6,600 |
| Bills receivable | 8,000 | Establishment expenses | 4,500 |
| Bills payable | 10,500 | Advertisement | 2,300 |
| Purchases | 75,000 | Furniture | 10,000 |
| Sales | 95,000 | Cash at bank | 3,200 |
| Opening stock | 12,000 | Miscellaneous receipts | 600 |
| Drawings | 4,500 |
Adjustments:
- Stock on 31st March, 2018 ₹ 14,200
- Income tax of Sangeetha paid ₹ 800
- Charge interest on drawings @ 12% p.a.
- Provide managerial remuneration @ 10% of net profit before charging such commission.
