Professional Documents
Culture Documents
NB: Students should read the following questions and come to the next
class with your homework.
1. Following are the extracts from the Trail balance of a firm
Trial balance
As on 31st December 2009
Sundry debtors
50,000
3,000
Discount
1,000
Additional information
1.
2.
3.
4.
2.
Sundry creditors
Cr.
50,000
Discount
1.000
2,000
Additional information:
1. Additional discount received from creditors after closing the accounts
Rs. 1,500
2. Create a reserve for discount on creditors at 10%.
1
You are required to Pass the journal entries, prepare reserve for discount
account and show how the different items will appear in firms final
accounts.
Pass the necessary journal entries, prepare provision for bad debts
account and provision for discount on debtors account and show how
the different items will appear in the firms final account.
3. From the following trial balance and additional information, you are
required to prepare the final accounts of Mr.AselaCompany.
Trial balance
As on 31st December 2010
Dr
Capital
Debtors
Drawings
Machinery
Sundry creditors
Wages
Purchases
Opening stock
Bank balance
Carriage charges
Salaries
Rent and taxes
Sales
Cr
20,000
5,400
1,300
7,000
2,800
10,000
19,000
4,000
3,500
300
400
900
29,000
51,800
51,800
Additional information
1. Closing stock Rs. 1,200
2. Outstanding rent and taxes Rs. 100
3. Charge depreciation on machinery at 10%
4. Wages prepaid Rs. 400
25,000
Drawings account
7,000
Creditors
8,000
Discount received
702
Bank (Cr.)
4,000
600
Purchase returns
530
2
Sales
67,500
Sales return
86
Stock as at 1.4.2007
9,000
Plant and Machinery (including Machinery for Rs.5, 000 purchased on 1.1.2008)
17,000
Furniture
1,500
Buildings
15,000
Purchases
30,230
Debtors
11,000
Manufacturing Wages
6, 000
Manufacturing Expenses
5,000
Carriage inwards
400
Carriage outwards
420
Bad debts
150
Salaries
2,800
126
Discount allowed
150
Insurance (Dr)
300
Bank
140
Cash in hand
30
Stock as at 31.3.2008
7550
Adjustments.
1. Provide for
(a) Interest on capital at 10% p.a. (no interest is to be provided on
drawings
(b) Outstanding expenses
Rs
Salaries
100
Manufacturing wages
50
Interest on bank loans
100
2. Depreciation on
a) Machinery at 10% p.a.
b) Furniture at 10% p.a.
c) Buildings at 2.5%p.a.
3. Prepaid expenses
a) Insurance
100
b) Salary
50
Furniture costing Rs. 500 was sold for Rs. 350 on 1.4.2007 and this amount was
later credited to Furniture account.
3
5. ( No adjustment )
From the following particulars prepare the Manufacturing account, Trading
Account and Profit and Loss Account.
Purchases of raw material
12195
Return inwards
70
1210
1000
Finished goods
1370
Wages
2000
Factory expenses
1840
Office expenses
300
Salaries
600
Distributing expenses
100
Selling expenses
700
Purchasing expenses
600
Export duty
300
Import duty
200
600
Stock on 1.1.2005
Raw Material
400
Work in progress
300
Finished goods
410
Sales
19500
Return outwards
85
Carriage inwards
100
Carriage outwards
105
10
20
Depreciation of Machinery
500
Repairs of machinery
100
40