Page 198 - DMGT104_FINANCIAL_ACCOUNTING

Dr. ( ) ( ) Cr.
To Salaries 9,000 By Trading A/c (gross profit 1,02,800
To Office expenses 2,400 transferred from trading A/c)
To Carriage outwards 2,000 By Discount 1,200
To Discount 750 By Commission 1,500
Financial Accounting
To Bad debts 1,200
To Insurance 1500
Less: Prepaid 200 1,300
Notes To Outstanding rent 3,000
To Depreciation:
Land and Buildings 2,500
Plant and Machinery 5,000
Furniture & Fixture 1,000
Office equipment 1,200 9,700
To Capital A/c 76,150
(Net Profit transferred)
1,05,500 1,05,500

Balance Sheet as on March 31, 2007

Liabilities ( ) Assets ( )
Capital Fixed Assets
Opening balance 1,30,000 Land & Buildings 50,000
Add: Net profit 76,150 2,06,150 Less: Depreciation @ 5% 2,500 47,500
Plant and Machinery 50,000
Less: Depreciation @ 10% 5,000 45,000
Furniture & Fixtures 10,000
Long Term Liabilities Less: Depreciation @ 5% 1,000 9,000
Office equipments 12,000
Less: Depreciation @ 10% 1,200 10,800
Current Liabilities Investments
Creditors 25,000
Bills payable 2,350 Current Assets
Outstanding Wages 2,000 Bills Receivable 20,000
Outstanding Rent 3,000 Debtors 40,000
Cash in hand 1,500
Cash at bank 4,500
Closing Stock 60,000
Prepaid Insurance 200
2, 38,500 2,38, 500

Illustration 18: Final Accounts with Adjustment
Prepare final accounts from the following balances of Mr. Ankit as on 31st December, 2007.
Extracts of Balances
as on 31st December, 2007

Debit Balances ( ) Credit Balances ( )
Drawings 45,000 Capital Account 6,09,000
Goodwill 90,000 Bills Payable 41,400
Land and Building 1,80,000 Sundry Creditors 91,500
Plant and Machinery 1,20,000 Purchase Returns 7,950
Loose tools 9,000 Sales 3,45,000
Bills Receivable 6,000
Stock 1.1.2007 1,20,000 Contd...
Purchase 1,53,000
Wages 60,000
LOVELY PROFESSIONAL UNIVERSITY
192 Carriage Inwards 3,600
Carriage Outwards 4,500
Coal and Gas 16,800
Salaries 12,000
Rent, Rates and Taxes 8,400
Discount allowed 4,500
Cash at Bank 75,000
Cash in Hand 4,200
Sundry Debtors 1,35,000
Repairs 5,400
Printing and Stationery 1,500
Bad Debts 3,600
Advertisments 10,500
Sales Returns 6,000
Furniture and Fittings 3,600
General Expenses 15,750