Advertisements
Advertisements
प्रश्न
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
उत्तर
|
Date |
Particulars | L.F. | Debit ₹ | Credit ₹ |
| a. | Wages A/c Dr. To Outstanding wages A/c (Outstanding wages) |
5,000 | 5,000 | |
| b. | Depreciation A/c Dr. To Machinery A/c (Depreciation provided) |
1,000 | 1,000 | |
| c. | Interest on capital A/c Dr. To Capital A/c (Interest on capital @ 5%) |
1000 | 1000 | |
| d. | Capital A/c Dr. To Interest on drawings A/c (Interest on drawings provided) |
50 | 50 | |
| e. | Bad debts A/c Dr. To Sundry debtors A/c (Bad debts written off) |
500 | 500 |
APPEARS IN
संबंधित प्रश्न
What are adjusting entries?
What is outstanding expense?
What is meant by provision for doubtful debts? Why is it created?
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 trial balance on March 31, 2016, shows the following:
Sundry debtors ₹ 30,000; Bad debts ₹ 1,200
It is found that 3% of sundry debtors is doubtful of recovery and is to be provided for. Pass journal entry for the amount of provision 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.
Prepare trading account of Archana for the year ending 31st December 2106 from the following information.
| Debit balance | ₹ | Credit balance | ₹ |
| Opening stock | 80,000 | Purchases returns | 10,000 |
| Purchases | 8,60,000 | Sales returns | 3,16,000 |
| Freight inwards | 52,000 | Import duty on purchases | 30,000 |
| Wages | 24,000 | Sales | 14,40,000 |
Adjustments:
(a) Closing stock ₹ 1,00,000
(b) Wages outstanding ₹ 12,000
(c) Freight inwards paid in advance ₹ 5,000
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%.
