Can someone tell me how to do the adjustment entries regarding pu8rchase and machinery?

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:
1. Stock on December 31, 2004 was Rs. 1,20,000.
2. Increase bad debts provision on account receivable to 5% and provide discount reserve on account receivable at 2%
3. Depreciate machinery by 10%
4. Goods taken away by the owner for his personal use Rs. 2400.
5. Machinery purchased Rs. 6000 was wrongly included in purchases
6. Unused machinery purchased Rs. 1800 was wrongly included in closing stock.
7. 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.

Adjusting Enteries:
Description....... Debit........Credit
Machinery............6000
Purchases...........................6000
Machinery............1800
Closing Stock.......................1800

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yeh wali adjustment kis tarha hon gi?

Apprentice Fee adjusted for 4 years

Rs. 3600 will be less from total Apprentice fee. because total fee will be adjusted in 4 year. current year portion is only 1200(4800/4).balance is forward to the next year as unearned Apprentice fee in the balance sheet on liability side.

any more help no matter ask any time.

1. Subtract advance income from respective income in Profit and Loss
Account.
2. Write advance amount under current liabilities in Balance sheet.

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