Question

advertisement expenses account appears in the trial balance at rupees 5000. close this account at the end of the accounting period by passing a journal entry.

Answer 1

Answer:

The end of year were rupees 70,000

Explanation:

Salaries outstanding on 31st Dec. 2017 were Rs. 16, 000.

Make provision for discount on debtors @ 2.5%. The debtors at the end of the year were Rs.70, 000.

Ans.

and also in the balance sheet. Sometimes, closing in the capital account of proprietor or partners by the amount of interest as it appears in the balance sheet. Thus, we debit Interest on capital as an expense in the statement of Profit and loss.

10. Manager’s commission

Sometimes the manager is also eligible to a commission on profits at a fixed rate. The calculation of commission is as follows: –

Commission on profit before charging such commission: –

Profit before commission x \(\frac{Rate of Commission}{100}\)

Commission on profit after charging such commission: –

Profit before commission x \(\frac{Rate of Commission}{100 + Rate of Commission }\)

We show the commission payable as an expense in Profit and Loss account and also in the balance sheet on the liabilities side.

11. Goods distributed as free samples

For promoting sales of an entity, it distributes free samples. Thus, it charges the cost of such free samples to advertisement account. This also reduces the stock of finished goods. Adjustment entry is as follows: –

Date Particulars Amount (Dr) Amount (Cr)

xx Advertisement A/c Dr . XXX

To Purchases A/c XXX

Solved Example for You

Pass the necessary journal entries to make the following adjustment as on 31st Dec. 2017

Stock on 31st Dec. 2017 was Rs.25, 000.

Depreciation @10% on furniture valued at Rs. 5,000 and machinery valued at Rs. 60,000.

Interest accrued on securities Rs 700.

Bad debts during the year amounted to Rs. 450.

Unexpired insurance as on 31st Dec. 2017 was Rs

Answer 2

The answer is shown below.

Explanation:

The closing entry to close the advertisement expense account is as follows

Income Summary A/c Dr Rs. 5000

          To Advertising expense A/c Rs. 5000

(Being the advertising expense is closed)

While closing the expenses account we debited the income summary account and credited the respective expenses account i.e advertising expenses account

Learn more

Journal entry for closing stock

brainly.in/question/290473

How to make closing entries

https://brainly.in/question/15896333