Professional Documents
Culture Documents
55,230 55,230
Financial Accounting
Page :168; Illustration :9.11;
Give the necessary adjusting entries for the following items as on 31ST
March ,2000.
Particulars Dr Cr
RS. RS.
Capital 2,50,000
Inventory 60,000
(on Jan 1,2001)
Accounts 1,00,000
Receivable
Accounts 70,000
Payable
Sales 6,00,000
Purchases 3,70,000
Sales 20,000
Returns
Purchases 10,000
Returns
Discount 10,000
Received
Bills 40,000
Payable
Rent 10,000
Payable
Insurance 10,000
Drawings 20,000
Land and 1,50,000
Buildings
Freehold 50,000
Property
Plant and 50,000
Machinery
Petty 6,000
Expenses
Cash at 20,000
Bank
Furniture 30,000
Freight 20,000
Wages 15,000
Salaries 15,000
Advertising 10,000
Postage and 10,000
Telephones
General 34,000
Expenses
Dr Cr
RS RS
Cash 540 Sales 98,780
Cash 2,630 Accounts
At Returns 500
Bank Outwards
Purchases 40,675 Capital 62,000
Return 680 Accounts 6,300
Inwards Payable
Wages 8,480 Rent 9,000
Fuel and 4,730
Power
Carriage 3,200
On Sales
Carriage 2,040
On purchases
Inventory 5,760
(1ST July,1991 )
Buildings 32,000
Freehold land 10,000
Machinery 20,000
Patents 75,000
Salaries 15,000
General 3,000
Expenses
Insurance 600
Drawings 5,245
Accounts 14,500
Receivable
1,76,580 1,76,580
Taking into account the following adjustments prepare the Trading ,Profit and Loss Account as on 30TH
June ,2001.
1. Inventory on hand on 30TH June ,2001 is RS 6,800
2. Machinery to be depreciated at the rate of 10% and patents at the rate of 20%
3. Salaries for the month of June 2001 amounting to RS1,500 were unpaid.
4. Insurance includes an annual premium of RS 170 on a policy expiring on 31ST December ,2001
5. Bad debts to be written of are RS 725
6. Rent receivableRS1,000.
Financial Accounting
Page :176; Illustration:10.6
From the following Trial Balance of Pratibha and company, prepare Trading & Profit and Loss
Account for the year ending 31ST Dacamber,2002 after giving effect to the undermentioned
adjustments.
1,50,200 1,50,200
Additional Information:
Additional Data:
Sales 3,00,000
Plant and Machinery 1,20,000
Rent ,Rates and Taxes 20,000
Sales ,Return 30,000
Freight 4,000
Accounts Receivable 70,000
Opening Inventory 1,20,000
Purchases 2,30,000
Discount Paid 5,000
Interest on Bank Loan 5,000
Salaries 70,000
Cash in Hand 5,000
Purchase Returns 10,000
Bank Loan 1,50,000
Capital 1,81,500
Accounts payable 40,000
Bills payable 26,000
Legal charges 500
General Expenses 8,000
Cash at Bank 20,000
Adjustments:
Trial Balance
Dr Cr
Particulars RS Particulars RS
You are required to prepare a Trading and Profit and Loss account for the year ended 31.12.2006 and a
Balance as at 31.12.2006.Adjustments to be made are given below.
Trial Balance
Dr. Cr.
Particulars Rs Particulars Rs
Cash in hand 500 Sales 1,50,300
Cash at bank 1,200 Purchase returns 5,000
Office furniture 6,000 Accounts payable 12,000
Accounts receivable 15,000 Bills payable 8,000
Commissions 1,200 Discount received 1,000
Bills receivables 3,500 Dividend received 2,000
Power and Fuel 6,000 Rent received 3,500
Plant and Machinery 24,000 Capital 27,000
Office expenses 2,000
Carriage inwards 1,200
Carriage outwards 3,500
Rent, Rates and Taxes 1,700
Leasehold premises 25,000
Wages 30,000
Salaries 7,000
Opening Inventory 12,000
Sales returns 2,000
Purchases 60,000
Drawings 7,000
2,08,800 2,08,00
Adjustments:
Financial Accounting
Page :187; Illustration:11.6;
The following is the Trial Balance of Rajan Jewelers as on December 31,2005.
Dr. Cr.
Particulars RS Particulars RS
Opening Inventory 72,000 Capital 5,00,000
Purchases 2,25,000 Sales 3,50,000
Furniture 15,000 Purchase returns 1,800
Motor car 30,000 Murthy 32,000
Buildings 4,25,000 Varadan 24,000
Gangappa 12,000 Commission 7,500
Gourishankar 20,000
Mathews 18,000
Advertisements 22,000
Repairs and maintenance 13,000
General expenses 16,000
Insurance 7,000
Cash in hand 3,500
Cash at bank 6,000
Salaries 30,000
9,15,300 9,15,300
Note:
To arrive at accounts receivables and accounts payables you have to add necessary ledger accounts.
You are required you draft Profit and Loss accounts and Balance sheet as on 31st December 2005.
Q2. Journalize the following transaction in the book of X for the month of Jan 98.
Jan 98
Jan 1:- X commenced bus. with a capital of Rs10,000.
Jan 1:-Bought furniture for cash RS 3,000.
Jan 2:-bought goods for cash from B RS 500.
Jan 3:-sold goods for cash to A RS 1,000.
Jan 4:-purchased goods from C on credit RS 2,000.
Jan 5:-credit sales to D RS 1,500.
Jan 8:-bought mach. for cash RS 3,000.
Jan 12:-paid trade expenses RS 50.
Jan 18:-paid for advertising to Apple Advertising Ltd. RS 1,000.
Jan 19:-cash deposited in bank RS2,000.
Jan 20:-recd. interest RS500.
Jan 24:-paid insurance premium RS 200.
Jan 30:-paid rent RS 500.
Jan 31:-paid salary to P RS1,000.
Jan 32:-withdrawn RS 200for personal use.
Q4. Name the rules of debit and credit for all the types of a\c s. 7
Financial Accounting
TUTORIAL 2
Q2. The cash transactions of Anand during the first week of Jan are as follows:
Jan 1:purchased stationery RS 100.
Jan 2:cash sales RS 500.
Jan 4:purchased goods for cash RS 400.
Jan 5:received from Ram an advance of RS 800.
Jan 6:paid for sign board RS300.
Jan 7:purchased calculator RS 1000.
Jan 8:cash sales RS 300.
Particulars RS Particulars RS
Purchases 1,65,625 Trade expenses 2,314
Sales 2,56,650 Rent, rates and taxes 3,517
Sales returns 4,250 Bad debts 525
Purchase returns 3,120 Interest on investments 800
Stock 1.4.97 26,725 Loan to A 3,000
Sundry debtors 40,200 Investments 11,500
Wages 20,137 Capital 28,000
Salaries 8,575 Outstanding wages 2,017
Furniture 6,575 Outstanding rent 750
Bad debts reserve 5,200 Prepaid insurance 524
Sundry creditors 25,526 Cash in hand and at bank 5,725
Patents 4,500 Bills receivables 17,070
Postage 3,226 Drawings 6,000
Bills payable 8,950 Depreciation on furniture 675
Lighting 350
Financial Accounting
Page 51 –problem 26
Comment whether the following Trial Balance is correct , if not, draw a correct Trial Balance.
Trial Balance
Debit Credit
Particulars RS RS
1,45,000 1,45,000
Financial Accounting
Page 51-problem 28
From the following list of Balances prepare a Trial Balance as on 30.6.2000.
Particulars RS Particulars RS
Particulars RS Particulars RS
1.opening stock 15,600 16.insurance 400
2.freehold premises 30,000 17.bad debt reserve 300
3.plant and machinery 9,000 18.commission received 3,000
4.wages 2,000 19.commission paid 1,000
5.sundry debtors 12,000 20.bad debts 300
6.carriage inwards 180 21.office expenses 1,500
7.carriage outwards 200 22.salaries 2,000
8.factory expenses 1,600 23.travelling expenses 200
9.royalty 200 24.legal expenses 200
10.purchase of raw 15,000 25.cash at bank 840
material 26.cash in hand 800
11.factory rent 1,400 27.loan taken 6,000
12.capital 16,000 28.office rent 800
13.discount allowed 800 29.sales (net) 66,000
14.discount received 720
15.sundry creditors 4,000
Financial Accounting
Page 52-problem 31
Given below is the Trial Balance of Srinivas and company as on 31st December,2001.
Dr. Cr.
Particulars RS Particulars RS
Land 15,300 Sales 41,460
Purchases 21,200 Return outwards 420
Salaries 2,200 Interest 240
Rent 600 Accounts payable 4,920
Postage 300 Loan 3,000
Stationary 240 Capital 12,000
Wages 5,200
Freight and carriage 560
on purchases
Miscellaneous expenses 500
Carriage on sales 800
Repairs 900
Bad debts 120
Opening Inventory 3,100
Buildings 1,700
Furniture 1,000
Accounts receivables 6,000
Cash in hand 1,300
Return inwards 1,020
62,040 62,040
From the above information , prepare a Trading and Profit and Loss account of Srinivas and company.