Professional Documents
Culture Documents
You are
prepare a
profit and loss
the year
September
balance sheet at that date.
Amoun
t
500
12,000
108,000
Particulars
15,000
Discount received
Amoun
t
75,000
22,000
167,00
0
3,000
70,000
Returns outwards
4,000
24,000
Creditors
16,000
Capital
Bank loan
Sales
1,600
400
13,000
9,000
10,000
22,500
1000
2,87,0
00
2,87,0
00
required to
trading and
account for
ended 30
2014 and a
Q.2 On 31 December 2014, the trial balance of Joy toys showed the following accounts and
balances.
Particulars
Capital
Drawings
LoanSBI Bank
Leasehold premises
Motor vehicles
Investments
Trade debtors
Trade creditors
Cash
Bank overdraft
Sales
Purchases
Returns outwards
Returns inwards
Carriage outwards
Stock
Rent and rates
Light and heat
Telephone and postage
Printing and stationery
Bank interest
Interest received
Debit
Rs.
Credit
Rs.
39,980
14,760
20,000
52,500
13,650
4,980
2,630
1,910
460
3,620
81,640
49,870
960
840
390
5,610
1,420
710
540
230
140
148,7
30
620
148,7
30
You are required to prepare a trading and profit and loss account for the year ended 31
December 2014, and a balance sheet at that date
Adjustment entry
Effect on balance
sheet
1. Closing stock
2. outstanding
expenses or
expenses
payable or
expenses due
but not paid
3. advance
expenses
4. income
receivable
Outstanding income
account dr. To income
account
5. income
received in
advance
It will shown as
liability in the liabilities
side of balance sheet
7. Destroyed of
goods
8. Depreciation
9. Provisional for
doubtful debts
It will shown as
liability
10. Commission
to manager