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Trial Balance

The document is a trial balance with adjustments for a business as of March 31, 2008. It provides details of accounts, debit and credit amounts in the trial balance. It then lists 7 adjustments that need to be made to the accounts for closing stock valuation, depreciation, outstanding rent, bad debts provision, salaries allocation, and machinery purchase. The summary provides the trading account, profit and loss account and adjusted balance sheet that results after making the listed adjustments to the trial balance figures.

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237 views3 pages

Trial Balance

The document is a trial balance with adjustments for a business as of March 31, 2008. It provides details of accounts, debit and credit amounts in the trial balance. It then lists 7 adjustments that need to be made to the accounts for closing stock valuation, depreciation, outstanding rent, bad debts provision, salaries allocation, and machinery purchase. The summary provides the trading account, profit and loss account and adjusted balance sheet that results after making the listed adjustments to the trial balance figures.

Uploaded by

sunny0135
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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GRAPHIC ERA UNIVERSITY

Course: BBA I Sem (A)


Name: Rashika walia
Submitted to : Prof. Arvind Mohan
Topic: Trial Balance with Adjustment

TRIAL BALANCE
As on 31st March, 2008
Particulars Dr. (Rs.) Cr. (Rs.)
Drawing and Capital ………………………………………………………….. 7,500 50,000
Purchase and Sales ………………………………………………………….. 72,100 95,000
Returns ………………………………………………………….. 1,300 2,700
Sundry Debtors and Creditors ………………………………………………………….. 18,200 35,750
Stock (1st April, 2007) …………………………………………………………. 19,800
Bad Debts …………………………………………………………. 3,000
Bills Receivable and Payable …………………………………………………………. 12,000 23,000
Cash in Hand …………………………………………………………. 300
Office Expenses …………………………………………………………. 6,210
Sales Van …………………………………………………………. 15,000
Sales Van Expenses …………………………………………………………. 1,400
Discount …………………………………………………………. 2,910
Rent and Taxes ………………………………………………………….. 10,700
Telephone Charges ………………………………………………………….. 1,050
Postage and Telegram ………………………………………………………….. 950
Furniture ………………………………………………………….. 5,000
Printing and Stationery ………………………………………………………….. 2,750
Commission …………………………………………………………. 8,400
Carriage Inwards …………………………………………………………. 3,200
Salaries and Wages …………………………………………………………. 20,500

2,09,360 2,09,360

i. Closing Stock was valued at Rs. 61,700.


ii. Depreciate Furniture and Machinery @ 10% p.a. and Sales Van at 20% p.a.
iii. Outstanding Rent amounted to Rs. 900.
iv. Bad Debts Rs. 200.
v. Make a Provision for Doubtful Debts @ 5% on Debtors.
vi. Charge 1/4th of Salaries and Wages to the Trading Account.
vii. A new machinery was purchased on credit and installed on 31st December costing Rs. 15,000.
No entry for the same has yet been passed in the books.
Solution:
TRADING AND PROFIT AND LOSS ACCOUNTS
For the year ended 31st March, 2008
Dr. Cr.
Particulars Rs. Particulars Rs.
To Opening Stock 19,800 By Sales 95,000
To Purchases 72,100 Less: Returns 1,300 93,700
Less: Returns 2,700 69,400 By Closing Stock 61,700
To Carriage Inwards 3,200
To Salaries and Wages 5,125
To Gross Profit c/d 57,875

1,55,400 1,55,400

To Office Expenses 6,210 By Gross Profit b/d 57,875


To Sales Van Expenses 1,400 By Discount 2,910
To Rent and Taxes 10,700
Add: Outstanding 900 11,600
To Telephone Charges 1,050
To Postage and Telegrams 950
To Printing and Stationery
To Commission
To Salaries and Wages
To Bad Debts 3,000
Add: Further Bad Debts 200
Add: Provision Required 900
To Dep. On Sales Van 3,000
Furniture 500
Machinery 375 3,875
To Net Profit trfd. to Capital A/c 5,075

60,785 60,785
BALANCE SHEET
As on 31st March, 2008
Liabilities Rs. Assets Rs.
Current Liabilities Current Assets
Bills Payable 23,000 Cash in Hand 300
Creditors 35,750 Bill Receivable 12,000
Rent Outstanding 900 Debtors 18,200
Creditor for Machinery 15,000 Less: Bad Debts 200

Capital 18,000 17,100


Opening Balance 50,000 Less: Provision 900 61,700
Less: Drawing 7,500 Closing Stock

42,500 47,575 Fixed Assets


Add: Net Profit 5,075 Machinery 15,000
Less: Depreciation 14,625
(15,000 x 3/2 x 10/100) 375
Sales Van 15,000 12,000
Less: Depreciation 3,000
Furniture 5,000 4,500
Less: Depreciation 500
1,22,225 1,22,225

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