Final a/c problem 2

Trial balance of Edward Edison as on 30th September 2010 Particulars Capital a/c Drawing Investment Motor vehicle Office Furniture Office equipment Cash in Hand Purchase Sales Returns Carriage Opening stock Customes,duties and clearing charges Debtors Salaries Trade expensess 1500 350 14000 3000 17600 2500 750 10000 8000 2000 6000 550 47500 75500 1000 Debit Crdit 25000

Trial balance of Edward Edison as on 30th September 2010 Particulars General expenses Bad debts Reserve for Bad debts Discount Creditors Prepaid insurance Outstanding salaries 100 200 100 Debit 600 250 750 50 12600 Crdit

Total

115100

115100

Edison as on 30th September 2010

Particulars Capital a/c Drawing Investment Motor vehicle Office Furniture Office equipment Cash in Hand Purchase Sales Returns 750 10000 8000 2000 6000 550 47500 75500 1000 Debit Credit 25000 t2,cr:b/s,liability T2,dr:b/s, asset i.e. (-) from capital a/c* T2,dr:b/s,asset T2,dr:b/s ,asset* T2,dr:b/s, asset* T2,dr:b/s,asset* T2,dr:b/s,asset T1,dr:tdn,dr T1,cr:tdn,cr T1,cr:tdn,cr can be deducted from dr side tdn

Carriage
Opening stock

1500
350

T1,cr:tdn,dr when not mentioned is inward

T1,dr:tdn,dr

Customes,duties and clearing charges Debtors Salaries Trade expensess

14000

T1,dr:pnl,dr

3000 17600 2500

T2,dr:b/s,asset* T1,dr:pnl,dr T1,dr:tdn,dr

Trial balance of Edward Edison as on 30th September 2010 Particulars Debit Credit General expenses 600

Notes

T1,dr:pnl,dr

Bad debts
Reserve for Bad debts Discount Creditors

250
750 100 50 12600 200

T1,dr:pnl,dr
T1,cr:pnl,cr T1,dr:pnl,dr and t1,cr:pnl ,cr T2,cr:b/s,liability T2,dr:b/s,asset T2,cr:b/s,liability

Prepaid insurance 100 Outstanding salaries

Total

115100

115100

 Adjustment 1.Closing stock was Valued at 8000/-. 2.Deprecitaion on Motor vehicle and office frutniture at 5% and office and equipment at 10%. 3.Create 5% Reserve and doubtful debts and debtors. 4. goods costing 100 was taken for personal use by edward and it was included in debtors. 5.Goods worth 1000 were destroyed by fire and the Insurance company admitted a claim for 800.

 Adjustment 1.Closing stock was Valued at 8000/-. Tdn,cr and b/s,asset 2.Deprecitaion on Motor vehicle and office frutniture at 5% and office and equipment at 10%. Pln ,dr and B/s ,liability under particular asset. 3.Create 5% Reserve and doubtful debts and debtors. Pln, cr and b/s asset (minus from asset)

goods costing 100 was taken for personal use by edward and it was included in debtors. b/s,liability (- from capital a/c) and b/s ,asset (-from debtors a/c) 5.Goods worth 1000 were destroyed by fire and the Insurance company admitted a claim for 800. pln dr (loss only) ,tdn cr and insurance claim rs 800.

In the books of Edward Edison Trading and profit and Loss a/c as on 30/9/2010 Dr Particulars Amont Particulars Amount

To opening stock To Purchases 47500 (-) Returns 1000

To c arriage To Trade expenses To Custom devices To gross profit c/d

14000 46500
350 300 3000 18850

To sales 75500 (-) Return 1500 By closing stock

By goods destroyed in fire

74000 8000
1000

83000

83000

In the books of Edward Edison

Trading and profit and Loss a/c as on 30/9/2010

Dr Particulars To salaries To general expenses Amount 2500 600 Particulars By gross profit b/d By Reserve for doubtful debts Amount 18850 750

To bad debts To discount (allowed)

To depreciation Motor vehicle Office furniture Office equipment To R.B.D.D To Loss by fire To Net profit (Trasferred to capital)

250 100

By discount received

50

400 100 600 880 200 14020 19650 19650

Balance sheet of Edward edison for the year endes 30.9.2010 Particulars Capital (-) Drawing Amount Particulars Cash in Hand Motor vehicles 8000 (-) 5% Dereciation 400 Investment Office furniture 2000 (-) 5% Depreciation 100 Prepaid Insurance Closing stock Office equipment 6000 (-) 10% depreciation 600 A mount 550 760 10000 1900 100 8000

25000 750 24250 (-) Goods taken for personal use 100 24150 (+) Net profit 14020 38170

Outstanding salaries

200

5400

Creditors

12600

Insurance claim
Debtors 17600 (-) 5% R.B.D.D. 880 16720 (-)goods taken 100 for Personal use

800

16620
50970

Total

50970

Total