Question

2.
(3)
Give adjusting entries for the following adjustments in Final Accounts for the year
ended 31-3-2020.
a) Stock on 31st March 2020 Rs.30000/- , where as its Net Realisable Value (Market
value ) was Rs.35,000/-
b) The manager is entitled to a commission @ 5% on net profit after charging such
commission. (Net profit during the year is Rs.1,05,000/-)
c) Interest due but not received Rs.4000/-

Answer 1

Answer:

a) stock on 31st March 2020 is Rs.30000/-, and it will be shown in Profit and loss a/c credit side and Balance sheet Assets side

b) The manager is entitled to a commission @ 5% on net profit after charging such commission is Rs.4987.50 and commission will be shown on Profit and loss a/c debit side

c) interest due but not received Rs.4000 will be shown on profit and loss a/c credit side and Balance sheet assets side