The following is the trail balance on Swati on 31st March,2016. Nam

1.	The following is the trail balance on Swati on 31st March,2016. Name of AccountsDebit (Rs.)Credit (Rs.)Purchases3,00,000Debtors4,00,000Interest Earned 8,000Salaries 60,000Sales6,42,000Purchases Return 10,000Wages 40,000Rent 30,000Sales Return 20,000Bad Debts Written-off 14,000Creditors2,40,000Capital 2,00,000Drawings48,000Provision for Doubtful Debts 12,000Printing and Stationery 16,000Insurance 24,000Opening Stock 1,00,000Office Expenses 24,000Furniture and Fittings 40,000Provision for Depreciation 4,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,16,000––––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,16,000–––––––––––––––––––––– Prepare the trading and profit and loss account for the year ended 31st March, 2016 and the balance sheet as at that date for making the following adjustments. (i) Depreciation furniture and fittings by 10% on original cost. (ii) Make a provision for doubtful debts equal to 5% of debtors. (iii) Salaries for the month of March amounted to Rs. 6,000 were unpaid which must be provided for. The balance in the account includes Rs. 4,000 paid in advance. (iv) Insurance is prepaid to the extent of Rs. 4,000. (v) Provide Rs. 16,000 for office expenses. (vi) Stock valued a Rs. 12,000 were put up by Swati for her personal use, the cost of which has not been adjusted in the books of accounts. (vii) Closing stock valued at Rs. 1,36,000 (net realisable value Rs. 1,20,000).
Answer» The following is the trail balance on Swati on 31st March,2016. $\begin{matrix} Name of Accounts & Debit (Rs.) & Credit (Rs.) Purchases & 3, 00, 000 Debtors & 4, 00, 000 Interest Earned & 8, 000 Salaries & 60, 000 Sales & 6, 42, 000 Purchases Return & 10, 000 Wages & 40, 000 Rent & 30, 000 Sales Return & 20, 000 Bad Debts Written-off & 14, 000 Creditors & 2, 40, 000 Capital & 2, 00, 000 Drawings & 48, 000 Provision for Doubtful Debts & 12, 000 Printing and Stationery & 16, 000 Insurance & 24, 000 Opening Stock & 1, 00, 000 Office Expenses & 24, 000 Furniture and Fittings & 40, 000 Provision for Depreciation & 4, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 16, 000 - --------- - - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 16, 000 - --------- - - --------- - \end{matrix}$ Prepare the trading and profit and loss account for the year ended 31st March, 2016 and the balance sheet as at that date for making the following adjustments. (i) Depreciation furniture and fittings by 10% on original cost. (ii) Make a provision for doubtful debts equal to 5% of debtors. (iii) Salaries for the month of March amounted to Rs. 6,000 were unpaid which must be provided for. The balance in the account includes Rs. 4,000 paid in advance. (iv) Insurance is prepaid to the extent of Rs. 4,000. (v) Provide Rs. 16,000 for office expenses. (vi) Stock valued a Rs. 12,000 were put up by Swati for her personal use, the cost of which has not been adjusted in the books of accounts. (vii) Closing stock valued at Rs. 1,36,000 (net realisable value Rs. 1,20,000).

The following is the trail balance on Swati on 31st March,2016. Name of AccountsDebit (Rs.)Credit (Rs.)Purchases3,00,000Debtors4,00,000Interest Earned 8,000Salaries 60,000Sales6,42,000Purchases Return 10,000Wages 40,000Rent 30,000Sales Return 20,000Bad Debts Written-off 14,000Creditors2,40,000Capital 2,00,000Drawings48,000Provision for Doubtful Debts 12,000Printing and Stationery 16,000Insurance 24,000Opening Stock 1,00,000Office Expenses 24,000Furniture and Fittings 40,000Provision for Depreciation 4,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,16,000––––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,16,000–––––––––––––––––––––– Prepare the trading and profit and loss account for the year ended 31st March, 2016 and the balance sheet as at that date for making the following adjustments. (i) Depreciation furniture and fittings by 10% on original cost. (ii) Make a provision for doubtful debts equal to 5% of debtors. (iii) Salaries for the month of March amounted to Rs. 6,000 were unpaid which must be provided for. The balance in the account includes Rs. 4,000 paid in advance. (iv) Insurance is prepaid to the extent of Rs. 4,000. (v) Provide Rs. 16,000 for office expenses. (vi) Stock valued a Rs. 12,000 were put up by Swati for her personal use, the cost of which has not been adjusted in the books of accounts. (vii) Closing stock valued at Rs. 1,36,000 (net realisable value Rs. 1,20,000).

Answer»

The following is the trail balance on Swati on 31st March,2016.

$\begin{matrix} Name of Accounts & Debit (Rs.) & Credit (Rs.) Purchases & 3, 00, 000 Debtors & 4, 00, 000 Interest Earned & 8, 000 Salaries & 60, 000 Sales & 6, 42, 000 Purchases Return & 10, 000 Wages & 40, 000 Rent & 30, 000 Sales Return & 20, 000 Bad Debts Written-off & 14, 000 Creditors & 2, 40, 000 Capital & 2, 00, 000 Drawings & 48, 000 Provision for Doubtful Debts & 12, 000 Printing and Stationery & 16, 000 Insurance & 24, 000 Opening Stock & 1, 00, 000 Office Expenses & 24, 000 Furniture and Fittings & 40, 000 Provision for Depreciation & 4, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 16, 000 - --------- - - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 16, 000 - --------- - - --------- - \end{matrix}$

Prepare the trading and profit and loss account for the year ended 31st March, 2016 and the balance sheet as at that date for making the following adjustments.

(i) Depreciation furniture and fittings by 10% on original cost.

(ii) Make a provision for doubtful debts equal to 5% of debtors.

(iii) Salaries for the month of March amounted to
Rs. 6,000 were unpaid which must be provided for. The balance in the account includes Rs. 4,000 paid in advance.

(iv) Insurance is prepaid to the extent of Rs. 4,000.

(v) Provide Rs. 16,000 for office expenses.

(vi) Stock valued a Rs. 12,000 were put up by Swati for her personal use, the cost of which has not been adjusted in the books of accounts.

(vii) Closing stock valued at Rs. 1,36,000 (net realisable value Rs. 1,20,000).

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