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Standard XI

Accountancy

Adjustment for Outstanding Expenses

trial balance...

Question

trial balance as on 31/3/2014
(1) Adjuste purchases rs 2000
(2)opening stock rs 2500
(3)closing stock rs 1500
(4) sales rs 6000
prepare trading a/c,profit and loss a/c and balance sheet

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Solution

Dear Student,

The solution to your query is provided below.

Financial Statement of….

Trading Account
for the year ended …

Dr. Cr.

Particulars Amount
(Rs) Particulars Amount
(Rs)

Adjusted Purchases 2,000 Sales 6,000

Balance Sheet
as on …

Liabilities Amount
(Rs) Assets Amount
(Rs)

Closing Stock 1,500

No item will be shown in the Profit and Loss Account.

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Similar questions

Q. Trial balance of a trader shows the following balances:
Opening Stock Rs.

9, 600

, Purchases Rs.

11, 850

, Wages and Salaries Rs.

3, 200

. Carriage on Purchases Rs.

200

, Carriage Outwards Rs.

300

, Sales A/cs Rs.

24, 900

, Closing Stock is Rs.

3, 500

Gross Profit will be _____________.

Q. The balance in books of X, a sole proprietor were:
Opening Stock Rs.

17, 000

, Purchases Rs.

52, 000

Wages Rs.

46, 500

Fuel Rs.

15, 000

Sales Rs.

1, 45, 000

and Closing stock Rs.

25, 000

whose Net Realizable value was Rs.

28, 000

. Find the Gross profit.

Practical Problem

From the following Trial Balance of M/s Sanjay and Vijay, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date after taking into consideration the adjustments given below.

Trial Balance as on 31^st March, 2013
Debit Balance	Amount Rs	Credit Balance		Amount Rs
Salaries and wages	12,000	Sales		1,10,000
Postage and Telegram	1,750	Sundry Creditors		72,700
Opening Stock	23,500	Bills Payable		40,000
Plant and Machinery	70,000	10% Bank loan (Taken on 1^st Oct. 2012)		60,000
Advertisement	5,000	Outstanding Audit fees		5,900
Import duty	2,100	Capital A/c-	Sanjay	45,000
Bad debts	1,000		Vijay	45,000
Purchases	98,500
Sundry Debtors	45,800
Bills Receivable	16,700
Carriage outward	1,800
Wages and stationery* (Note 2)	14,000
Printing and stationery	4,600
Cash in hand	1,850
Leasehold Premises	80,000
	3,78,600			3,78,600

Adjustments:
1) Closing stock was valued at Rs 30,000.

2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.

3) Goods of Rs 2,500 distributed as free samples.

4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.

5) Depreciate Plant and Machinery at 10% p.a.

6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.

The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2017

Account title	Debit Rs	Credit Rs
Opening Stock	2,00,000
Purchases	8,10,000
Sales		10,10,000
	10,10,000	10,10,000

(Only relevant items)

Closing Stock as on date was valued at Rs 3,00,000.

You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M/s Bhola and Sons.

Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Debit balances	Amount Rs	Credit balances	Amount Rs
Stock	20,000	Sales	2,45,000
Cash	5,000	Creditors	10,000
Bank	10,000	Bills payable	4,000
Carriage on purchases	1,500	Capital	2,00,000
Purchases	1,90,000
Drawings	9,000
Wages	55,000
Machinery	1,00,000
Debtors	27,000
Postage	300
Sundry expenses	1,700
Rent	4,500
Furniture	35,000

Closing stock Rs 8,000.

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Financial Statement of….
Trading Account for the year ended …
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Adjusted Purchases	2,000	Sales	6,000

Balance Sheet as on …
Liabilities	Amount (Rs)	Assets	Amount (Rs)
		Closing Stock	1,500

trial balance as on 31/3/2014(1) Adjuste purchases rs 2000(2)opening stock rs 2500(3)closing stock rs 1500(4) sales rs 6000prepare trading a/c,profit and loss a/c and balance sheet

trial balance as on 31/3/2014
(1) Adjuste purchases rs 2000
(2)opening stock rs 2500
(3)closing stock rs 1500
(4) sales rs 6000
prepare trading a/c,profit and loss a/c and balance sheet