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प्रश्न
What is outstanding expense?
उत्तर
Expenses which have been incurred in the accounting period but not paid till the end of the accounting period are called outstanding expenses.
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संबंधित प्रश्न
What is prepaid expense?
Give the adjusting entries for interest on capital and interest on drawings.
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.
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 | |
| 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
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.
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%.
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 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.
