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प्रश्न
If there is no existing provision for doubtful debts, provision created for doubtful debts is ______.
पर्याय
Debited to bad debts account
Debited to sundry debtors account
Credited to bad debts account
Debited to profit and loss account
उत्तर
If there is no existing provision for doubtful debts, provision created for doubtful debts is debited to profit and loss account.
APPEARS IN
संबंधित प्रश्न
Answer in one sentence only.
To which account Gross Profit transferred?
Answer in one sentence only.
In the absence of partnership deed, what is profit sharing ratio of the partners?
Give the word / term or phrase which can substitute the following statement.
The accounts which are prepared at the end of each financial year.
State whether the following statement is True or False.
Profit and loss account is a nominal account.
State whether the following statement is True or False.
Credit balance of profit and loss account shows net profit of the business.
Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2017.
|
Account Name |
Debit |
Credit |
|
Capital |
|
|
|
Dinker |
|
2,35,000 |
|
Ravinder |
|
1,63,000 |
|
Drawings |
|
|
|
Dinker |
6,000 |
|
|
Ravinder |
5,000 |
|
|
Opening Stock |
35,100 |
|
|
Purchases and Sales |
2,85,000 |
3,75,800 |
|
Carriage inward |
2,200 |
|
|
Returns |
3,000 |
2,200 |
|
Stationery |
1,200 |
|
|
Wages |
12,500 |
|
|
Bills receivables and Bills payables |
45,000 |
32,000 |
|
Discount |
900 |
400 |
|
Salaries |
12,000 |
|
|
Rent and Taxes |
18,000 |
|
|
Insurance premium |
2,400 |
|
|
Postage |
300 |
|
|
Sundry expenses |
1,100 |
|
|
Commission |
|
3,200 |
|
Debtors and creditors |
95,000 |
40,000 |
|
Building |
1,20,000 |
|
|
Plant and machinery |
80,000 |
|
|
Investments |
1,00,000 |
|
|
Furniture and Fixture |
26,000 |
|
|
Bad Debts |
2,000 |
|
|
Bad debts provision |
|
4,600 |
|
Loan |
|
35,000 |
|
Legal Expenses |
200 |
|
|
Audit fee |
1,800 |
|
|
Cash in Hand |
13,500 |
|
|
Cash at Bank |
23,000 |
|
|
|
8,91,200 |
8,91,200 |
Prepare final accounts for the year ended December 31,2017, with following adjustment:
(a) Stock on December 31,2017, was Rs 42,500.
(b) A Provision is to be made for bad debts at 5% on debtors
(c) Rent outstanding was Rs 1,600.
(d) Wages outstanding were Rs 1,200.
(e) Interest on capital to be allowed on capital @ 4% per annum and interest on drawings to be charged @ 6% per annum.
(f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum
(g) Ravinder is entitled to a commission Rs 1,500.
(h) Depreciation is to be charged on Building @ 4%, Plant and Machinery, 6%, and furniture and fixture, 5%.
(i) Outstanding interest on loan amounted to Rs 350.
Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were Rs 90,000 and Rs 60,000. The profit during the year were Rs 45,000. According to partnership deed, both partners are allowed salary, Rs 700 per month to Anubha and Rs 500 per month to Kajal. Interest allowed on capital @ 5% p.a. The drawings at the end of the period were Rs 8,500 for Anubha and Rs 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.
Satish and Pradeep are partners in a partnership firm, sharing profit and losses equally. From the following Trial Balance and Adjustment given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2013 and Balance sheet as on that date.
Balance Sheet as on 31st March 2013
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
| Purchases | 220000 | Partners' Capital | |
| Sundry Debtors | 45000 | Satish | 120000 |
| Discount | 4000 | Pradeep | 90000 |
| Opening stock | 25000 | Sales | 430000 |
| Wages and salaries | 23000 | Sundry Creditors | 85000 |
| Manufacturing expenses | 25500 | Discount | 3500 |
| Factory Building | 175000 | ||
| Plant and Machinery | 75000 | ||
| Advertisement (for 2 yrs w.e.f. 1.1.13) | 10000 | ||
| Salary and wages | 45000 | ||
| Cash in hand | 15000 | ||
| 10 % Govt. Bonds (purchased on 01.07.2012) | 60000 | ||
| Warehouse Rent | 6000 | ||
| 728500 | 728500 |
Adjustments :
(1) The closing stock was valued at the market price at ₹ 92000, which is 15 % above its cost price.
(2) Depreciation machinery at 10 % p.a.
(3) Outstanding wages were ₹ 2500
(4) Maintain R.D.D. at 5 % on sundry debtors.
Net profit is ______.
Explain how closing stock is treated in final accounts?
