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Adjustments: Provide depreciation on PPE at 10% using reducing balance method of depreciation. Reserve 5% discount on Accounts Receivable A debtor of Rs.1200 has been declared bankrupt by the court. (Bad Debt) One-month royalty Rs2000 was due on 30th June 2014 Provide 6% on debtors for bad and doubtful debts Closing stock stood at Rs10,000 Salary for Rs.500 has been wrongly debited to the account of customs duty Wages outstanding Rs.2200 Required: Trading and Profit and Loss Account for the

Adjustments: Provide depreciation on PPE at 10% using reducing balance method of depreciation. Reserve 5% discount on Accounts Receivable A debtor of Rs.1200 has been declared bankrupt by the court. (Bad Debt) One-month royalty Rs2000 was due on 30th June 2014 Provide 6% on debtors for bad and doubtful debts Closing stock stood at Rs10,000 Salary for Rs.500 has been wrongly debited to the account of customs duty Wages outstanding Rs.2200 Required: Trading and Profit and Loss Account for the

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Adjustments:

  1. Provide depreciation on PPE at 10% using reducing balance method of depreciation.
  2. Reserve 5% discount on Accounts Receivable
  3. A debtor of Rs.1200 has been declared bankrupt by the court. (Bad Debt)
  4. One-month royalty Rs2000 was due on 30th June 2014
  5. Provide 6% on debtors for bad and doubtful debts
  6. Closing stock stood at Rs10,000
  7. Salary for Rs.500 has been wrongly debited to the account of customs duty
  8. Wages outstanding Rs.2200

Required: Trading and Profit and Loss Account for the year ended 30th June 2014 and the Balance Sheet as on that date.                                            

The following is the trial balance at 30th June 2014 of ABC Manufacturing Company 田 Particulars Rs.000 Particulars Rs.000 Property, Plant Equipment 705,000 Profit 4000 Cash in hand 200,000 Dividend Payable 12000 Free hold Land 500,000 Interest Income 2000 930,000 1408,000 Accounts payable Opening Stock Сapital 682,000 Purchases 12000 Wages 250,000 Revaluation reserve 50,000 Discount allowed 80,000 Long term loan 70,000 Salaries 117,000 Accumulated Depreciation 5000 Factory rent 13000 Credit sales 2300,000 Auditors Remuneration 12000 Cash sales 1200,000 Royalties Freight inward Carriage outward Customs duty 11000 Discount received 40,000 19000 Dividend income 50,000 22000 Purchases return 32,000 90,000 Clearing charges Motive power Loss on sale of investment 11000 9000 2000 Prepaid rent Sundry debtors 44000 32000 Bad debts 2000 Sales return 2000 Total 4459,000 4459,000
Transcribed Image Text:The following is the trial balance at 30th June 2014 of ABC Manufacturing Company 田 Particulars Rs.000 Particulars Rs.000 Property, Plant Equipment 705,000 Profit 4000 Cash in hand 200,000 Dividend Payable 12000 Free hold Land 500,000 Interest Income 2000 930,000 1408,000 Accounts payable Opening Stock Сapital 682,000 Purchases 12000 Wages 250,000 Revaluation reserve 50,000 Discount allowed 80,000 Long term loan 70,000 Salaries 117,000 Accumulated Depreciation 5000 Factory rent 13000 Credit sales 2300,000 Auditors Remuneration 12000 Cash sales 1200,000 Royalties Freight inward Carriage outward Customs duty 11000 Discount received 40,000 19000 Dividend income 50,000 22000 Purchases return 32,000 90,000 Clearing charges Motive power Loss on sale of investment 11000 9000 2000 Prepaid rent Sundry debtors 44000 32000 Bad debts 2000 Sales return 2000 Total 4459,000 4459,000
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