Question

prepare the final accounts for the year ending 31 march 2016 ,after taking into accounts ,the following adjustments:. opening stock 16200.
sales. 65360
purchases. 47000
coal & power. 2240
wages. 7200
general expenses. 2500
taxes & insurance. 1315
discount (dr.). 550
provision for bad 900
debts
commission (cr.). 1320
car expenses. 1800
donation. 105
capital. 24500
drawings. 2000
building. 11000
machinery. 9340
debtors. 6280
creditors. 2500
loan. 7880
motor car. 2000
bills payable. 3850
cash. 80
bank overdraft. 3300
(1)write-off ₹160 for bad debts and make provision for bad debts @ 5% on debtors.
(2)depriciate machinery by 10% and motor car by 12%.
(3)interest of ₹750 is outstanding on loan.
(4)it was decided to transfar ₹250 every year to charity fund.
(5)1/3 of car expenses and depreciation amount is to be transferred to a owner's account.
(6)stock valued on 31 march,2016 was ₹ 50560​

Answer 1

Adjustments:

i.               Rent accrued but not yet received Rs.  500

 

ii.               Fire insurance premium prepaid to the extent of Rs.  1,500

 

iii.               Provide manager’s commission at 10% on profits before charging such commission.