Tuesday, October 15, 2013
|
|
Member
|
|
Join Date: Dec 2012
Posts: 30
Thanks: 30
Thanked 13 Times in 7 Posts
|
|
Corrections
Quote:
5. Following is the Trail Balance of Rizwan & brothers as on December 31, 2004.
PARTICULARS ..........DEBIT Rs. .........CREDIT Rs.
Drawings...... …………42,600…… ……………… X
Machinery ………………69,000 ……..………… … X
Opening stock …………87,000……….. …………… X
Purchases …………… 6,00,000 ……..………… X
Capital account …………………X.. ……………… 2,55,000
Sales …………….. ……………X............... 7,14,000
Sales return ………………12,600 ….. ……………… X
Purchase return ……………… X….. ……………… 11,400
Salaries …………………26,400.. ……………… X
Stationary ………………19,200 ….. ……………… X
Apprentice fee received ........X..................…..4,800
Bank overdraft ………………….X. ……………… 8,400
Bad debts ………………….. 10,200 ……………… X
Accounts receivable …………… 1,92,000…….. ……………… X
Accounts payable ………………….. X ……………… 60,000
Provision for bad debts ………………X….. ……………… 6,000
TOTAL ……………….. ……10,59,600……… 10,59,600
Adjustments:
Stock on December 31, 2004 was Rs. 1,20,000.
Increase bad debts provision on account receivable to 5% and provide discount reserve on account receivable at 2%
Depreciate machinery by 10%
Goods taken away by the owner for his personal use Rs. 2400.
Machinery purchased Rs. 6000 was wrongly included in purchases
Unused machinery purchased Rs. 1800 was wrongly included in closing stock.
Apprentice fee to be adjusted for four years.
Note: No depreciation should be charged on the machinery purchased during the year and on carriage paid on such machinery.
Required: Trading and Profit & Loss Account for the year ended December 31, 2004 and Balance Sheet after taking into account the above adjustments.
|
Following are the corrections for Q#5 Paper I:
Opening Stock = 87600
Closing Stock = 102000
Unused stationary is correct instead of unused machinery
|