Question

From the following Trial Balance of Sh. Raghu Ram, Prepare Trading, Profit & Loss Account for the year ended 31st December, 2017 and Balance Sheet as on that date:



Purchases and sales 375000(Dr. Rs. ) 4,20,000(Cr. Rs.)
Returns Inwards 15,000(Dr. Rs.)
Returns Outwards 10,000 (Cr. Rs.)
Carriage 12,400(Dr. Rs.)
Wages and Salaries 52,600 (Dr. Rs.)
Trade Expenses 2,200(Dr. Rs.)
Rent 12,000(Cr. Rs.)
Insurance 1700 (Dr. Rs.)
Audit Fees 1,500 (Dr. Rs.)
Debtors and Creditors 10,000 (Dr. Rs.) 50100
B/R and B/P 3,300(Dr. Rs.) 2,200
Printing and Advertising 5,500 (Dr. Rs.)
Commission 13000(Cr. Rs.)
Opening Stock 36,000 (Dr. Rs.)
Cash in hand 18800 (Dr. Rs.)
Cash in Bank 26,800 (Dr. Rs.)
Bank Loan 20,000(Cr. Rs.)
Interest on Loan 1,500 (Dr. Rs.)
Capital 2,50,000 (Cr. Rs.)
Drawings 15,000(Dr. Rs.)
Fixed Assets 2,00,000 (Dr. Rs.)
777,300 (Dr. Rs.) 7,77,300(Cr. Rs.)




Adjustments:-
1. Stock at the end Rs. 50,000
2. Depreciate Fixed Assets by 8%
3. Commission earned but not received amounts to Rs. 600
4. Rent received in advance Rs. 1,000
5. Allow 7% interest on Capital and charge
Rs. 900 as interest on Drawings.

Answer 1

Financial Accounting
Page :168; Illustration :9.11;Give the necessary adjusting entries for the following items as on 31
ST
March ,2000.
A.
Closing stock as on 31
ST
March ,2000 –10,000B.Salary due not paid – Rs1,000
C.
Unexpired insurance on 31
ST
March,2000 –RS 2,000D.Rent received in advance –RS 3,000E.Interest due not received –RS6,00F.Depreciation on fixed assets @ 33 1\3 %G.Bad debts to be written off Rs 5,000H.Create provision for bad and doubtful debts @12%I.Create provision for discount on debtors @ 2%J.Create reserve for discount on creditors @2%K.Allow interest on capital @ 10% charge interest on drawing @ 12%IMFORMATION AS PER TRIAL BALANCE:Fixed Assets RS 60,000; Debtors RS 2,05,000;Creditors RS 1,00,000; Capital RS 5,00,000 ;Drawing RS 10,000