Accountancy, asked by kushalgowdak123, 6 months ago

Trom the following trial balance u Ravikumar on 31-12-2012.propues
hen
Name of Accounts
Debit
Credit
e
1,20,000
15,000
22,000
20,000
60,000
39,000
2,52,000
$8,000
3,55,000
5,500
No
01
02
03
04
OS
00
07
08
09
10
11
12
13
14
15
16
17
18
Drawings and Capital
Hills Receivable
Machinery
Debtors and Creditor
Woyton
Purchasen und Sales
Commission
Rout and taxes
Stock
Salarion
Travelling Expenses
Insurance
Ropains
Bad dobta
Furniture
Returns
Cash in hand
Cash at bank
6000
90,000
10,500
2,000
600
3,400
3,500
9000
5000
500
2000
5,40,500
2,000
3,40,500
Adjustments:
1) Closing Stock was 1,00,000.
2) Create provision for bad debts on debtors @ 5%.
3) Prepaid Insurance ? 100.
4) Commission earned but not reccived < 500.
5) Wages and Salaries are unpaid to the extent of 1000 and 1500 respective
6) Depreciute Machinery at 5% and Furniture by 10% p.a.​

Answers

Answered by qwluton
0

Given :

Trial balance of Ravikumar on 31-12-2012

To find :

To rectify the errors in the trial balance

Solution :

To rectify the errors in the trial balance, the following adjustments should be made:

  1. Add 1,00,000 to the stock account to account for the closing stock
  2. Create a provision for bad debts account and debit it with the amount calculated by multiplying the debtors account balance by 5% (20,000 * 5% = 1,000)
  3. Subtract 100 from the prepaid insurance account
  4. Add 500 to the commission account
  5. Add 1000 to the wages account and 1500 to the salaries account
  6. Create two provision accounts for machinery and furniture and debit them with the amount calculated by multiplying the machinery and furniture account balance by 5% and 10% respectively. (60,000 * 5% = 3,000) and (39,000 * 10% = 3,900)

After making these adjustments, the trial balance should balance, with the debit and credit sides being equal.

You should also create an adjusted trial balance including the accounts you created and the adjustments you made.

#SPJ1

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