2.
The following is the Trial Balance of Mr. Ram Lal as at 31st December, 2006:
Rs. (Dr.)
Rs. (Cr.)
r:
Particulars
86,690
Ram Lal's Captial
Stock on 1-1-2006
Purchases and Sales
3,89,600
5,800
Returns
46,800
3,21,700
8,600
18,600
5,700
9,300
24,000
14,800
Freight and carriage
Rent and Taxes
Salaries and Wages
Sundry debtors and Creditors
Bank loan @ 6% p.a.
Bank Interest on loan
Printing and Advertising
Miscellaneous Income
20,000
900
14,600
250
8,000
Cash at Bank
1,800
4,190
Discount
5,000
11,450
Furniture and Fittings
General Expenses
Insurance
Postage and Telegrams
Cash in hand
Traveling Expenses
Drawings
1,300
2,330
380
870
40,000
5,21,330
5,21,330
This following adjustmetrs should be made:
(1) Included amongst the Debtors is Rs. 3,000 due from Suresh Kumar and included among the
creditors Rs. 1,000 due to him
Provision for Bad and Doubtful Dets be created at 5% and Reserve for Discount @ 2% on Sundry
Debtors.
Depreciate Furniture and Fittings by 10%.
(iv) Personal Purchases amounting to Rs. 600 had been included in the Purchases Day Book.
(v) Interst on Bank Loan shall be provided for the whole year.
(vi) One quarter of the amount of Printing and Advertising is to be carried forward to next year.
(vii) Credit purchase invoice amounting to Rs. 400 had been omitted from the books.
(vii) Stock on 31st December, 2006 was Rs. 78,600
233
make adjustments
Answers
Answer:
The following is the Trial Balance of Mr. Ram Lal as at 31st December, 2006:
Rs. (Dr.)
Rs. (Cr.)
r:
Particulars
86,690
Ram Lal's Captial
Stock on 1-1-2006
Purchases and Sales
3,89,600
5,800
Returns
46,800
3,21,700
8,600
18,600
5,700
9,300
24,000
14,800
Freight and carriage
Rent and Taxes
Salaries and Wages
Sundry debtors and Creditors
Bank loan @ 6% p.a.
Bank Interest on loan
Printing and Advertising
Miscellaneous Income
20,000
900
14,600
250
8,000
Cash at Bank
1,800
4,190
Discount
5,000
11,450
Furniture and Fittings
General Expenses
Insurance
Postage and Telegrams
Cash in hand
Traveling Expenses
Drawings
1,300
2,330
380
870
40,000
5,21,330
5,21,330
This following adjustmetrs should be made:
(1) Included amongst the Debtors is Rs. 3,000 due from Suresh Kumar and included among the
creditors Rs. 1,000 due to him
Provision for Bad and Doubtful Dets be created at 5% and Reserve for Discount @ 2% on Sundry
Debtors.
Depreciate Furniture and Fittings by 10%.
(iv) Personal Purchases amounting to Rs. 600 had been included in the Purchases Day Book.
(v) Interst on Bank Loan shall be provided for the whole year.
(vi) One quarter of the amount of Printing and Advertising is to be carried forward to next year.
(vii) Credit purchase invoice amounting to Rs. 400 had been omitted from the books.
(vii) Stock on 31st December, 2006 was Rs. 78,600
233
make adjustments