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    FA With Adjustments

    Uploaded by

    Harshini Akilandan
    1) The document provides ledger balances and additional information to prepare a trading account for P. Sen as of March 31, 2016. 2) The summary provides the opening stock, purchases, sales, returns, wages, carriage, freight, gas and fuel, and closing stock balances to calculate gross profit. 3) Gross profit is calculated as Rs. 85,000 with total debits and credits of Rs. 304,000 each.

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    FA With Adjustments

    Uploaded by

    Harshini Akilandan
    79 views14 pages
    1) The document provides ledger balances and additional information to prepare a trading account for P. Sen as of March 31, 2016. 2) The summary provides the opening stock, purchases, sales, returns, wages, carriage, freight, gas and fuel, and closing stock balances to calculate gross profit. 3) Gross profit is calculated as Rs. 85,000 with total debits and credits of Rs. 304,000 each.

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    FA With Adjustments (1)

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    1) The document provides ledger balances and additional information to prepare a trading account for P. Sen as of March 31, 2016. 2) The summary provides the opening stock, purchases, sales, returns, wages, carriage, freight, gas and fuel, and closing stock balances to calculate gross profit. 3) Gross profit is calculated as Rs. 85,000 with total debits and credits of Rs. 304,000 each.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    79 views14 pages

    FA With Adjustments

    Uploaded by

    Harshini Akilandan
    1) The document provides ledger balances and additional information to prepare a trading account for P. Sen as of March 31, 2016. 2) The summary provides the opening stock, purchases, sales, returns, wages, carriage, freight, gas and fuel, and closing stock balances to calculate gross profit. 3) Gross profit is calculated as Rs. 85,000 with total debits and credits of Rs. 304,000 each.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 14

    Prepare trading account from the following ledger balances presented by P.

    Sen as on 31st March, 2016.

    Additional information:
    i.  Stock on 31st March, 2016 Rs.  20,000
    ii.  Outstanding wages amounted to Rs.  4,000
    iii. Gas and fuel was paid in advance for Rs.  1,000
    Trading Account
    Dr Cr
    Particulars Amount Particulars Amount
    Opening Stock 10000 Sales 300000
    Purchases 160000 Less: Return I/W 16000 284000
    Less: Return O/w 10000 150000
    Wages 30000 Closing Stock 20000
    Add: O/s wages 4000 34000
    Carriage Inward 10000
    Freight Inward 8000
    Gas & Fuel 8000
    Less: Paid in advance 1000 7000
    219000
    Gross Profit 85000
    304000 304000
    From the following particulars presented by Thilak for the year ended 31st March, 2017,
    prepare profit and loss account.

    Adjustments: WN: Debtors = 40000


    i. Outstanding salaries amounted to Rs.  4,000 Less: ABD 3000
    ii.  Rent paid for 11 months 37000
    iii.  Interest due but not received amounted to Rs.  2,000 Less:PBD 1850
    iv. Prepaid insurance amounted to Rs.  2,000 35150
    v.  Depreciate buildings by 10%
    vi. Further bad debts amounted to Rs.  3,000 and make a provision for bad debts @ 5% on sundry debtors
    vii.  Commission received in advance amounted to Rs.  2,000
    P/L A/C
    Dr Cr
    Particulars Amount Particulars Amount
    Rent Paid 22000 Gross Profit 100000
    Add: o/S Rent 2000 24000 Commission 12000
    Salaries 10000 Less: Received in adv 2000 10000
    Add: O/s Salaries 4000 14000 Disc Received 2000
    Insurance Premium 8000 Interest received 6000
    Less: Ins Premium 2000 6000 Add: O/s Interest 2000 8000
    Bad Debt 2000 Old PBD 4000
    Add: Further BD 3000
    Add: PBD 1850 6850
    Depreciation on Buildings 8000
    58850

    Net Profit 65150


    124000 124000
    From the following balances as on 31st December, 2017, prepare profit and loss account.

    Adjustments:
    i.               Rent accrued but not yet received Rs.  500
    ii.               Fire insurance premium prepaid to the extent of Rs.  1,500
    iii.               Provide manager’s commission at 10% on profits before charging such commission.

    Profit before charging commission = 55500 - 45500 = Rs 10000

    Commission = Net Profit before charging commission x Rate/100


    P/L Account
    Dr Cr
    Particulars Amount Particulars Amount
    Salaries 18000 Gross Profit 50000
    Office Rent paid 12000 Rent received 2000
    Advertisement 8000 Add: Accrued Rent 500 2500
    Carriage o/w 2500 Discount Received 3000
    Fire Insurance premi 6500
    Less: Prepaid 1500 5000
    45500
    Manager's commission 1000
    Net Profit 9000
    55500 55500
    From the following balances obtained from the books of Siva, prepare trading and profit and loss account.

    Adjustments:
    i.               Closing stock on, 31st December, 2016 was Rs.  4,500
    ii. Manager is entitled to receive commission @ 5% of net profit after providing such commission.

    Profit before charging commission = 14000 - 9800 = Rs 4200

    Commission = Net Profit before charging commission x Rate/(100+Rate) = Rs 200


    Trading and P/L Account
    Dr Cr
    Particulars Amount Particulars Amount
    Op Stock 9000 Sales 42000
    Purchases 22000 Closing Stock 4500
    Exo on Purchases 1500
    Gross Profit 14000
    46500 46500

    Bank Charges 3500 Gross Profit 14000


    Bad Debt 1200
    Sundry expenses 1800
    Disc allowed 1700
    Exp on sales 1000
    Repair on office furniture 600
    Manager's commission 200
    Net Profit 4000
    14000 14000
    Solution 1
    Trading and P/L Account
    Dr Cr
    Particulars Amount Particulars Amount
    Opening stock 4000 Sales 29000
    Purchases 19000 Closing Stock 1200
    Wages 10000
    Less: Prepaid wages 400 9600 Gross loss 2700
    Carriage I/w 300
    Gross Profit
    32900 32900
    Gross loss 2700
    Salaries 400 Net Loss 4800
    Rent & Taxes 900
    Add: O/s Rent & Taxes 100 1000
    Depreciation @10% 700 700

    4800 4800
    Balance Sheet
    Dr Cr
    Liabilities Amount Assets Amount
    Machinery 7000
    Capital 20000 Less: Depreciation 700 6300
    Less: Net loss 4800
    Less: Drawings 1800 13400 Closing Stock 1200
    Bank Balance 3000
    Creditors 2800 Sundry Debtors 5400
    O/s Rent & Taxes 100 Pre-paid wages 400

    16300 16300
    Solution 2
    Trading and P/L Account
    Dr Cr
    Particulars Amount Particulars Amount
    Opening stock 38500 Sales 231440
    Purchases 110000 Closing Stock 72600
    Less: Pur Returns 1100 108900
    Freight 9900
    Wages 35200
    Less: Installation wages 1100 34100
    Gas & Fuel 2970
    Factory Lighting 1100
    Gross Profit 108570
    304040 304040
    Salaries 13200
    Office expenses 2750 Gross Profit 108570
    Postage & Telegram 1540 Old provision for BD 880
    Insurance 1760 Interest on loan 1100
    Office Rent 2860 add o/s interest 3300 4400
    Discount 1320
    Depreciation:
    Plant & machinery 38500
    Furniture 550
    Freehold Property 3300
    Loose Tools 440 42790
    Bad debt 660
    Additional Bad debts 600
    Prov for BD 1433 2693
    Manager's commission 4085 72998
    Net Profit 40852
    113850 113850
    Balance sheet
    lablites amt assest amt
    capital 228800 plants&machinery 99000
    (+)net profit 40800 (+)new mechniery 16500
    (-)drawing 18200 256400 (-)depreciation 38500 77000
    bills payable 5000 freehold property 66000
    sundary creditor 59400 (-)depreciation 3300 62700
    manger commission 4080 office furinture 5500
    (-)depreciation 550 4950
    loose tools 2200
    (-)depreciation 440 1760
    closing stock 72600
    sundary debtor 29260
    (-)bad debs 600
    (-) pdd 1433 27170
    loan to krisna 44000
    (-)interest paid 3300 47300
    cash at hand 2640
    cash at bank 29200

    325320 325320
    Solution 1
    Trading and P/L Account
    Dr Cr
    Particulars Amount Particulars Amount
    opening stock 3480 sales 15450
    purchase 5475 (-)sales ret 200 15250
    (-)pur ret 125 5350 closing stock 3250

    gross profit 9690


    18500 18500
    salaries 3300 gross profit 9690
    (+)outstanding sal 300 3600 by commision 375
    tax and 1200 (-) reviced in ad 125 250
    (+) out 120
    dep buil 375
    dep fur 64
    dep moter 1250
    adv
    pbdd 370
    (-) bad 255
    595
    opreation 200 395
    interst on b/o 118
    (+)outstanding b/o 85 203
    net profit 1551
    9940 9940
    Balance Sheet
    Dr Cr
    Liabilities Amount Assets Amount
    capital 12500 building 7500
    (+)net profit 1551 14051 (-) dep 375 7125
    sundary cred 2500 furnture 640
    bank o/d 2850 (-)dep 64 575
    (-) inter 85 2935 motor 6250
    outstanding expance 420 (-)dep 1250 5000
    commission 125 closing stock 3250
    sundary debtor 3000
    (-) bad debts 100
    (-)pdd 370 3500
    prepaid income 100
    cash & hand 600

    20031 20031

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