Q1: From the following details prepare an Adjusted Trial Balance after passing the necessary

adjustment entries :

Purchase 65,000 Sundry Creditors 35,000

Carriage Inward 1,000
Wages 6,000
Salaries 10,000
Rent, rates and taxes 1,800
Insurance 1,500
interest paid 1,000
Sales 95,000
Bills Payable 5,800
Cash and Bank 21,500
Plant and Machinery
10,000
Buildings 5,000
Furniture 3,000
Bills Receivable 10,000
Sundry Debtors 40,000
Capital 66,000
Sundry Expenses 5,000
Opening stock 21,000

Notes –
1. Salaries and wages due to be paid Rs. 2,000 and Rs. 1,500 respectively.
2. Insurance was paid to the extent of Rs. 300 advance.
3. A sum of Rs. 500 to be written off as bad debt out of' sundry debtors and a
provision of 5% to be created for doubtful debts.
4. Sundry expenses include Rs. 2 000 spent for the personal purpose of the proprietor
5. Sales for the period include Rs. 500 worth of goods (cost price) taken by the
proprietor for personal consumption. He has also taken goods worth Rs. I 000
(cost price) for personal consumption which has not been recorded in the I books
6. Depreciation to be provided as follows :–
Plant and Machinery 10%
Building 5%
Furniture 10%
7. Closing Stock Rs. 20,000

Q2: From the following details, prepare Trading, P & L A/c and Balancesheet after passing the necessary
adjustment entries :

Raman's Capital 2,28,800 Postage and Telegram 1,540

Stock 1.4.2013 38,500 Purchases 1,10,000
Raman's Drawings 13,200 Insurance 1,760
Wages 35,200 Gas and Fuel 2,970
Plant and Machinery 99,000 Purchase Return 1,100
Freehold Property 66,000 Sundry Creditors 44,000

Office Expenses 2750 Bad debts 660

Office Furniture 5500 Office rent 2860

Discount allowed 1320 freight 9900

Sundry Debtors 29260 Loose tools 2200

Loan to Mr. Kumar } 44000 Factory lightning 1100

At 10% p.a. balance on
1.4.2013
Cash at Bank 29260 Prov for doubtful debts 880

BiIIs Payable 5500 Int on loan to Mr Kumar 1100

Salaries 13200 Cash on hand 2640

Sales 231440
Additional Information
(I) Stock on 1.3.2014 was valued at Rs.72,6oo
(2) A new machine was installed during the year costing Rs.15,400 but it was not recorded in the books as no
payment was made for it. Wages Rs.l,loo paid for its erection have been debited to wage account
(3) Depreciation on plant and machinery by 33 113% ; furniture by 10% ; Freehold property by 5%
(4) Loose Tools were valued at Rs.I,76O on 31.3.2004
(5) Of the sundry debtors Rs.600 are bad and should be written off
(6) Maintain a provision of 5% on sundry debtors for doubtful debts
(7) The manager is entitled to a commission of 10% of the net profit after charging such commission