Page 82 - DMGT403_ACCOUNTING_FOR_MANAGERS

Unit 4: Final Accounts

Solution Notes
Discount Received a/c
Date Particulars Date Particulars
31.12.05 Prov. For discount on creditors a/c 300 31.12.05 By S. creditors 300

31.12.06 Prov. For discount on creditors a/c 50 31.12.06 By S. creditors 50

Provision for Discount on Creditors a/c

Date Particulars Date Particulars
31.12.05 To Balance b/d 400 31.12.05 By Discount Recd. 300
31.12.05 To P & L a/c 200 31.12.05 By Balance c/d 300
(Balancing figure) 2% on 15,000
600 600
1.1.06
To Balance b/d 300 31.12.06 By Discount Recd. 50

By P & L a/c 50
By Balance c/d 200
2% on 10,000
300 300

Example: (Final Accounts with Adjustment) Prepare Final Accounts from the following
st
balances of Mr. Ankit as on 31 December, 2009.
Extracts of Balances
as on 31 December, 2007
st
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 1.1.2009 1,20,000
Purchase 1,53,000
Wages 60,000
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 Contd...

Sundry Debtors 1,35,000
Repairs 5,400
1,500

Printing and Stationery LOVELY PROFESSIONAL UNIVERSITY 77
Bad Debts 3,600
Advertisements 10,500
Sales Returns 6,000
Furniture and Fittings 3,600
General Expenses 15,750