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प्रश्न
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.
उत्तर
Adjusting Entry-
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
| Bad debts A/c Dr. To Sundry debtors A/c (Further bad debts written off) |
1,200 | 1,200 |
Profit and Loss Account-
Dr. Cr.
| Particulars | ₹ | ₹ | Particulars | ₹ |
| To Bad debts | 800 | 2,000 | ||
| Add: Further bad debts | 1,200 |
Balance Sheet-
| Liabilities | ₹ | Assets | ₹ | ₹ |
| Sundry debtors | 16,000 | 14,800 | ||
| Less: Bad debts written off | 1,200 |
APPEARS IN
संबंधित प्रश्न
What is outstanding expense?
What are accrued incomes?
What is the provision for discounts on debtors?
What is meant by provision for doubtful debts? Why is it created?
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
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
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.
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.
