Samacheer Kalvi solutions for Accountancy [English] Class 11 TN Board chapter 13 - Final Accounts of Sole Proprietors - 2 [Latest edition]

A prepayment of insurance premium will appear in ______.

Net profit is ______.

Closing stock is valued at ______.

Accrued interest on investment will be shown

If there is no existing provision for doubtful debts, provision created for doubtful debts is ______.

What are adjusting entries?

What is outstanding expense?

What is prepaid expense?

What are accrued incomes?

What is the provision for discounts on debtors?

What is the need for preparing final accounts?

What is meant by provision for doubtful debts? Why is it created?

Explain how closing stock is treated in final accounts?

Give the adjusting entries for interest on capital and interest on drawings.

Explain the accounting treatment of bad debts, provision for doubtful debts, and provision for discount on debtors.

Pass adjusting entries for the following:

1. The closing stock was valued at ₹ 5,000
2. Outstanding salaries ₹ 150
3. Insurance prepaid ₹ 450
4. ₹ 20,000 was received in advance for commission.
5. Accrued interest on investments is ₹ 1,000.

For the fol owing adjustments, pass adjusting entries:

1. Outstanding wages ₹ 5,000.
2. Depreciate machinery by ₹ 1,000.
3. Interest on capital @ 5% (Capital: ₹ 20,000)
4. Interest on drawings ₹ 50
5. 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 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 trial balance of a trader on 31^st December 2016 shows debtors as ₹ 50,000.

Adjustments:

1. Write off ₹ 1,000 as bad debts
2. Provide 5% for doubtful debts
3. Provide 2% for discount on debtors

Show how these items will appear in the profit and loss A/c and balance sheet of the trader.

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.

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.

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 trading account of Archana for the year ending 31^st December 2106 from the following information.

Adjustments:

(a) Closing stock ₹ 1,00,000

(b) Wages outstanding ₹ 12,000

(c) Freight inwards paid in advance ₹ 5,000

Prepare profit and loss account of Manoj for the year ending on 31^st March 2016

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 31^st March, 2016, and a balance sheet as on that date.

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.

The following trial balance was extracted from the books of Arun Traders as of 31^st March 2018.

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:

1. Depreciate Plant and machinery @ 20%
2. Wages outstanding amounts to ₹ 750.
3. Half of the repairs and maintenance paid is for the next year.
4. Closing stock was valued at ₹ 15,000.

From the following trial balance of Ramesh as of 31^st March 2017, prepare the trading and profit and loss account and the balance sheet as of that date,

Adjustments:

1. The closing stock was valued at ₹ 35,000
2. Unexpired advertising ₹ 250
3. Provision for bad and doubtful debts is to be increased to ₹ 3,000
4. Provide 2% for discount on debtors.

Following are the ledger balances of Devi as on 31^st December, 2016.

Prepare trading and profit and loss account for the year ended 31st December, 2016 and balance sheet as on that date.

1. Stock on 31^st December, 2016 ₹ 5,800.
2. Write off bad debts ₹ 500.
3. Make a provision for bad debts @ 5%.
4. 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 31^st March 2018.

Adjustments:

1. The closing stock was ₹ 80,000
2. Provide depreciation on plant and machinery @ 20%
3. Write off ₹ 800 as further bad debts
4. 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 31^st December 2017.

Adjustments:

1. The closing stock on 31st December 2017 was valued at ₹ 3,900.
2. Carriage inwards prepaid ₹ 250
3. Rent received in advance ₹ 100
4. 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.

Adjustments:

1. Stock on 31st March, 2018 ₹ 14,200
2. Income tax of Sangeetha paid ₹ 800
3. Charge interest on drawings @ 12% p.a.
4. Provide managerial remuneration @ 10% of net profit before charging such commission.