Final s With Adjustments - Principles Of ing 26266j
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Final s with adjustments - Principles Of ing
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Principles Of ing Principles of ing Made Easy Home
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http://principlesofing2.com/ http://principlesofing2.com/ Final s with adjustments The Final s of a sole trader ( With Adjustments)
The trading and profit & loss and balance sheet prepared at the end of a year is known as Final s. While preparing the final s, there may be some items so far not adjusted. These items are to be adjusted in the final s for calculating the correct profit or loss of the business. The usual adjustments in the final s are:a. Expenses owing :- These are the expenses incurred during the year but not paid in cash. This amount will be paid in the near future (next year). The owing expense is to be added with the amount of same expense already paid given in the trial balance and it should be shown in the balance sheet
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Debit
The double entry for recording the expenses owing is
QuickBooks 2013 Original
Credit
Expenses Expenses owing
This expense is also known as outstanding expenses, expenses payable or expense payable. b. Prepaid expense. :- This is the expense paid during the year for the benefit of the next year. The portion of the expense which is prepaid is to be deducted from the total expenses already paid during the year (given in the trial balance) and shown as current asset in the balance sheet.
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The double entry for recording the prepaid expense is Debit Credit
Prepaid expense and Expense
This expense is also known as expense paid in advance or unexpired expense c. Accrued income:- The income earned during the year but not received in cash is known as accrued income. The amount of accrued income is to be considered as current year’s income and added with the concerned income received during the year(given in the trial balance) and shown as a current asset in the balance sheet.
Non-Profit ing
The double entry for recording the accrued income is:
www.qwpage.com/ ing software specializing in all nonprofit organizations
Debit
Accrued income and
Credit
Income
The accrued income is also known as outstanding income.
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d. Income received in advance:- This is the income received during the year for the services to be rendered during the next year. Since this income is not related to the current year, it should be deducted from the concerned income (given in the trial balance) and shown as a current liability in the balance sheet. The double entry for recording the income received in advance is: Debit
Income and
Credit
Income received in advance
This is also known as unexpired income. e. Depreciation:- The part of the cost of a fixed asset that is consumed by a business during the period of its use is known as depreciation. It is considered as an expense in the business therefore shown as an expense in the profit & loss and deducted from the cost price of the concerned fixed asset in the balance sheet. The double entry for recording depreciation is:
http://principlesofing2.com/ http://principlesofing2.com/ Debit
Profit & loss and
Credit
Depreciation
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f. Bad debt:- The part of the amount of debtors which cannot be recovered is known as bad debt. It is an expense to be shown in the profit & loss . If the bad debt appears in the trial balance, it is known as bad debt written off and shown in the profit & loss only. If bad debt information appears among the adjustment points below the trial balance, then it should be shown as an expense in the profit & loss and shown as a deduction from the debtors in the balance sheet under the heading “current assets”. The double entry for recording the bad debt is: Debit
Bad debt and
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Debtors
g. Goods drawings by the owner for his personal use:-
The amount of goods withdrawn by the owner for his personal use is to be considered as drawing. The double entry for recording the goods drawings is: Debit
Drawings and
Credit
Purchase or sales
The amount of goods drawings should be deducted form purchases and capital in the balance sheet. MCQ 1. A company which can offer its shares for subscription to the public is known as: A. Private company
B. Public limited company
C. Public corporation
D.Corporation
2. What is the authorized share capital of a limited company? A. The issued share capital
B. Issued share capital plus reserves
C. Issued share capital plus debentures D. The shares that a company is allowed to issue by law 3. The liability of share holders of a public limited company is limited to:
/ http://www.principlesofing2.com/ A. paid up value of shares
B. nominal value of shares
C. extent of private assets
D. called up share capital
4. What is the other name of authorized capital? A. issued capital
B. Nominal capital
C. Uncalled capital
D. Calls in arrears
5. The debenture interest paid is recorded in which part of the final s of a limited company? A. Trading
B. Profit and loss
C. Profit and loss appropriation
D. Balance sheet
6. The dividend is calculated on which of the following values of shares? A. Authorized share capital C. Called up share capital
B. Issued share capital D. Paid up share capital
7. Which of the following is not included in the share holders’ funds? A. Debentures
B. General reserves
C. Ordinary share capital
D. Preference share capital
8. Retained profit of a limited company belongs to the: A. directors’
B. debenture holders’
C. shareholders
D. company
9. Proposed dividends are; A. shown as a current liability on the balance sheet B. debited with other business expenses in the profit and loss C. paid from capital reserves D. credited to the appropriation 10. In the final s of a limited company, directors’ remuneration is: A. debited in the trading
B. debited in the profit and loss
C. debited in the appropriation
D. deducted from share capital in the B.S
11. Under which heading is share shown?
http://principlesofing2.com/ http://principlesofing2.com/ A. Current assets
B. Current liabilities
C. Share capital
D. Reserves & Surplus
12. The interim dividend paid is shown in the: A. profit and loss
B. profit and loss appropriation only
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C. profit and loss and balance sheet D. profit and loss appropriation and balance sheet Assignment Questions Q 1.
The following trial balance was taken from the books of a sole trader for the year ended
31st Dec 2003:Debit $
balances Purchase & sales
Credit $
92 300 5 200
Carriage inwards Drawings
1 90 300
5 000 4 500
Rent, rates & insurance Postage
http://principlesofing2.com/ http://principlesofing2.com/ 3 000 2 700
Stationery Capital
59 400
55 000
Machinery Buildings
45 000 15 000
Furniture & Fittings Debtors & Creditors
14 500
Commission received Opening stock
13 200 7 000
1 000 2 500
Cash at bank Cash in hand
1 800 250
Discounts Bad debt
3 920
800 22 120
Salaries & Wages Advertising
1 850 1 200
Carriage outwards Returns in & out
800 2 74 520
Total
700 2 74 520
Consider the following points at 31st December 2003:1. The closing stock was valued at $ 12 400
/ http://www.principlesofing2.com/ 2. Rent, rates & insurance was owing by & 500. `
3. Commission received in advance is $ 1 000.
4. Salaries & wages owing $ 880.
5. ment expense is prepaid by $ 350. 6. Carriage inwards payable $ 800. From the above information, you are required to prepare at 31st December 2003:a. The Trading & Profit & loss b. The Balance Sheet Q 2.
The following balances were extracted from the books of a sole trader
for the year ended 31st December 2003:Stock on 1st Jan 2003
12 300
Sales
Purchases 1 58 000
Rent paid
7 000
Motor Car
10 500
1 25 000
Discount received
Fixture & fittings
2 400 13 500
Advertising
1 960
Motor van expenses
1 120
Heating & lighting
1 200
Wages to assistant
6 000
ant’s fee
Insurance
700
Creditors
2 700
Bank overdraft
3 840
Drawings Capital Carriage inwards
9 000 27 210
Debtors
1 200 3 100
Cash in hand Bank charges Interest received License & taxes
1 000
250 270 1 400 500
Carriage outwards st
The following points are to be considered at 31
950
Dec 2003:-
1) The closing stock was valued at $ 10 500
2) Rent prepaid was $ 1 000
3) Motor van expenses owing
4) Interest earned but not received $ 600
$ 200
http://principlesofing2.com/ http://principlesofing2.com/ 5) Wages to assistant outstanding $ 1 200
6) License and taxes payable $ 300
From the above information, you are required to prepare:a. The trading & profit & loss for the year ended 31st Dec 2003-05-03
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b. The balance sheet at 31st Dec 2003.
Q 3.
The following trial balance was extracted from the books of a sole trader for the year ended
31st March 2003: balances Purchases & Sales
Debit
Returns Carriage inwards
$ Credit $ 39 600 76 000 300 450 1 200 900
Carriage outwards Opening stock
http://principlesofing2.com/ http://principlesofing2.com/ 5 200 7 550
Salaries Commission
670 3 000
Wages Debtors & Creditors
8 000 500
Discounts Plant & Machinery
4 200 800
19 000 450
Rates Furniture & Fittings
6 500 3 500
Bank overdraft Office expenses
150 600
General expenses Cash in hand
250 5 000
Bank Loan Capital 93 870
Total
3 920 93 870
Adjustments:1) The stock on 31-3-2003 was valued at $ 6 500 3) Rates prepaid $ 150
2) Carriage outwards was owing by $ 100
4) Rent for the year was earned but not received $ 700
5) General expenses owing $ 180
/ http://www.principlesofing2.com/ From the above information you are required to prepare at 31st March 2003:a. The Trading and profit & loss b. The Balance sheet Q 4.
The following trial balance was extracted from the books of Martin klin for
the year ended 31st Dec 2003:Debit balances Purchases Stock on 1-1-2003 Cash in hand Discount allowed Returns in Carriage outwards Rent & insurance Fixtures & Fittings Delivery van Debtors Drawings Wages & salaries General office expenses Total Adjustments:-
$ Credit balances 22 600Sales 5 200Capital 190Bank overdraft 1 400Discount received
$ 40 700 5 580 7 000 900
810Returns out 2 160Commission received 1 700Creditors 1 000
570 660 6 000
2 300 11 900 2 800 8 900 450 61 410Total
61 410
1. The closing stock was valued at $ 6 700 at 31st Dec 2003-05-03 2. Wages & salaries was owing by $ 1 100 3. General office expenses owing $ 150
http://principlesofing2.com/ http://principlesofing2.com/ 4. Rent prepaid is 280
5. Commission receivable $ 140
From the above information, Prepare:-
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a. The trading and profit & loss for the year ended 31st Dec 2003 b. The balance sheet at 31st Dec 2003
Q 5.
The following trial balance had been taken from the books of a sole trader for the year ended
31st Dec 2003: balances Purchases & sales
Debit $
Credit
70 000 1 500
Returns in & out Carriage inwards
$
1 46 000 1 600
6 000 3 000
Carriage outwards Discount received
http://principlesofing2.com/ http://principlesofing2.com/ 6 100
2 000
Telephone charges Rent paid
700 1 100
ment Debtors & Creditors
7 700
Bank loan Cash in hand
3 750 1 000
Power charges Salaries & wages
12 000 40 000
Premises at cost Plant at cost
35 000 15 000
Machinery at cost Motor car at cost
38 000 75 800
Capital Drawings Stock on 1-1-2003 Total Additional information:-
2 000 10 000
1 250 3 500 2 41 500
2 41 500
1. The stock on 31st Dec 2003 was valued at $ 4 750 2. Power charges unpaid at 31st Dec 2003 was $ 2 000 3. Salary paid in advance at 31st Dec 2003 was $ 3 000
/ http://www.principlesofing2.com/ 4. depreciate all the fixed assets @ 10 % p.a. on cost 5 Provide the provision for bad debts at $ 500
From the above , you are required to prepare:-
The trading and profit & loss for the year ended 31st Dec 2003 and a balance sheet
Q 6.
The following trial balance was taken from the books of a sole trader for the
Year ended 31st March 2004: balances Opening stock Purchases and Sales Carriage inwards Stationery Debtors & Creditors Plant & Machinery Buildings Furniture
Debit $ 2 000 25 600 1 400 500 8 000
44 600
6 000
10 000 11 000 4 000 1 000
Repairs to building Carriage out
1 600 9 800
Salaries & wages Office expenses
200 2 500
General expenses Drawings & Capital
2 500 1 200
Cash in hand Interest paid
200 2 100
Discount allowed & received Commission paid
30 700
3 000
200 1 500
Rent & rates Returns Bank Total Notes:-
Credit $
200
500 700
85 500
85 500
http://principlesofing2.com/ http://principlesofing2.com/ 1. The stock on 31-3-2004 was valued at $ 4 200
2. Salaries & wages owing for the year ended 31st March 2004 was $ 1 200 3. 2.5% of the debtors should be written off as bad debt
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4. Provide provision for depreciation on all the fixed assets @ 10% p.a. 5. Rent & rates paid in advance $ 200 6 The owner had taken goods costing $ 600 for his own use not entered in the books of the business Required prepare :a. The trading and profit & loss for the year ended 31st March 2004. b. The balance sheet at 31st March 2004. Following is the trial balance extracted from the books of Mr. Young, a sole trader, for the
Q7
Year ended 31st Dec 2002:-
http://principlesofing2.com/ http://principlesofing2.com/ balances
Debit $
Credit $ 37 470
Capital on 1st Jan 2002 Debtors & Creditors Premises
1 500 50 000
Loan ( payable after 5 years) Furniture & Equipment at cost
10 000
10 000 4 000
Provision for depreciation on Furniture& equipment 120 750
Cash in hand Maintenance cost of equipment Stock on 1-1-2002 Drawings
250
1 500 12 000
Rates Heating & lighting
1 100 1 300
Postage &telegram Repairs to premises
1 250 1 400
Purchases and sales Wages
14 000 1 800
45 000
96 720
96 720
Total
Prepare Trading and profit & loss for the year ended 31st Dec 2002 and the balance as at that date after taking into the following:-
sheet
1. The closing stock was valued at $ 2 700
/ http://www.principlesofing2.com/ 2. Heating & lighting unpaid at 31-12-02 was $ 250
3. Depreciate furniture & equipment by 10% on cost. 4. Rates paid in advance at the year end was $ 100
5. Interest on loan for the whole year @ 10% p.a. is outstanding The following trial balance was taken from the books of a sole trader for the year ended
Q 8. st
31
Dec 2002:-
balances Purchase & sales Returns in & out Carriage General expenses Salaries & wages Commission Discount from creditors Discount to debtors Interest Rent Rates & taxes ment Office expenses Bad debt Furniture Land & buildings Plant & Machinery Provision for depreciation on :-
Debit $ Credit $ 68 000 1 20 210 1 000 7 700 360 13 760 600 300 550 1 000 2 500 870 1 010 750 1 200 5 000 30 000 15 000 500
Furniture Plant & machinery Land & building Debtors & creditors Drawings & capital Provision for bad debt
700
1 500 3 000 8 000 2 000
4 500 38 920
http://principlesofing2.com/ http://principlesofing2.com/ Cash in hand Cash at bank
Opening stock Total
760
3 120 4 000 5 000
1 70 990
1 70 990
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Adjustments:1. The stock at the end was valued at $ 6 250 2. Salaries and wages owing at the end of the year was $ 1 240 3. Commission accrued $ 200 4. Increase the provision for bad debts by $ 240 5. Provide the provision for depreciation on all the fixed assets @ 10% p.a. 6. $ 4 500 of the carriage represents carriage on goods purchased 7. The owner had taken goods costing $ 900 for his own use, not recorded in the books Prepare the set of final s at 31st Dec 2002
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The trial balance shown below was extracted from the books of a sole trader for the year ended
Q 9. st
31
March 2003:-
balances Purchases & Sales
Debit $ Credit $ 60 000 1 26 000 1 500 1 600
Returns inwards and outwards Carriage inwards
600 300
Carriage outwards Discount received
3 100 700
Rent paid Communication expenses
2 000 1 100
ment Debtors and creditors
5 000
Bank loan (long term) Cash in hand
2 000 10 000
3 750 1 000
Power charges Salaries & wages
12 000 50 000
Premises Plant
25 000 10 000
Machinery Motor Car
40 000
/ http://www.principlesofing2.com/ 75 000
Capital Drawings
1 250 3 500
Stock on 1-1-2003 Total
2 17 700
2 17 700
1. Stock at 31st March 2003 was valued at $ 4 750
Notes:-
2. Power charges unpaid at the end of the year was $ 2 000 3. Salaries paid in advance at the end of the year was $ 3 000 4. Depreciate all the fixed assets @ 10% p.a. 5. Interest on bank loan @ 7% p.a. is owing for the whole year 6. Create the provision for bad debt at 5% on debtors. Prepare the set of final s as at 31st Dec 2003
Q 10.
The following trial balance was taken form the books of Alfred for the year ended 31-12-03
Debit balances Returns inwards Drawings Land & building Plant & machinery Debtors Purchases Rent Postage & telegram Advertising Cash in hand Stock on 1-1-03 Wages Telephone charges Salaries Printing & Stationery Commission Travelling
$
Credit balances 30 00Capital 70 00Creditors 20 000Sales 45 000Provision for bad debts 40 500Purchase returns 85 000
$ 1 00 000 26 000 1 69 000 1 000 4 000
3 000 500 10 000 10 500 23 000 13 000 500 13 250 890 5 100 1 500 6 300
http://principlesofing2.com/ http://principlesofing2.com/ Carriage inwards Motor van
Cash at bank Total
1 900 10 060
3 00 000 Total
3 00 000
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Adjustments:1. The closing stock was valued at $ 15 000 2. Rent owed by $ 600 3. Salaries Payable at the end of the year was $ 250 4. Commission paid in advance was $ 1 100 5. Provide for the provision for bad debt at 5% on the year end debtors 6. Depreciate land and building @ 5% , Plant and Machinery and Motor Van @ 10% p.a. on cost Required to prepare at 31st Dec 2003:a. The trading & profit & loss
b. The balance sheet
http://principlesofing2.com/ http://principlesofing2.com/ Q 11.
The following trial balance was related to a sole trader at 31st Dec 2003
balances Purchases & Sales Opening stock Carriage outwards
Debit $
Credit $
11 556 3 776
18 000
326 234
Carriage inwards Returns
355
440 2 447
Salaries & wages Motor expenses
664 576
Rent Sundry expenses
1 202 2 400
Motor vehicles Fixtures & fittings
600 4 577
Debtors & Creditors Provision for bad debts
3 000 600 200
Prov: for depreciation : Motor vehicle Fixtures &
50
Fittings Cash at bank
3 876 120
Cash in hand Drawings and capital
2 050 34 844
Total Adjustments:-
12 639 34 844
/ http://www.principlesofing2.com/ 1) The closing stock was valued at $ 4 998
2) Salaries and wages unpaid at the end of the year was $ 533 3) Depreciate motor vehicle @ 10% and Fixture & fittings @ 5% p.a. on cost 4) Rent paid in advance was $ 176
5) Carriage inwards owing was $ 66
6) Increase the provision for bad debts to $ 800 From the above information, you are required to prepare the set of final s at 31st Dec 2003
Q 12.
From the following trial balance, prepare trading and profit & loss and balance sheet
at 31st Dec 2001:Debit $
balances Capital Plant & machinery Salaries
18 000 8 500
Repairs Wages
1 600 28 000
Cash in hand Land & buildings
2 500 74 500 1 23 500
Purchases & Sales Bank overdraft
1 500
Provision for bad debt Debtors & Creditors
45 000
500 26 300 8 000 500
Discount received Prov. For depreciation : Plant & machinery
1 500
Land & Buildings Stock on 1st Jan 2001 Advertising
2 49 000 3 800
1 500
Discount allowed Commission received
Bad debts
Credit $ 50 000
1 000 37 000 600
http://principlesofing2.com/ http://principlesofing2.com/ Office expenses Fixtures & fittings
1 000 4 000
Stationery Interest
400 2 000
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1 500
Rent & rates Bank loan ( long term )
9 500 350600
Total Adjustments:-
350600
1. The closing stock was valued at $ 30 000 2. Salaries owing amounted to $ 1 500 and repairs outstanding $ 400 3. Commission received in advance $ 300 4. The provision for bad debts should be at 1% of the year end debtors 5. Depreciate all the fixed assets @ 10% p.a. on cost 6. Rent & rates was prepaid by $ 200
http://principlesofing2.com/ http://principlesofing2.com/ 7. Goods taken by the owner for his personal use not recorded in the books $ 1 000
Q 13.
T. Burton is a retailer whose trial balance at 31st Dec 1999 is given below:-
balances Purchases & Sales
Debit $
Credit $
72 000
1 19 400 750
Returns Carriage inwards Wages and salaries General expense Cash at bank Petty cash Premises Fixtures & Fittings Stock on 1st Jan 1999 Trade Debtors & Creditors Motor Vehicles at cost Provision for depreciation on Motor
930 27 670 4 750 4 210 150 62 520 9 000 5 550 7 200 13 150
4 850 2 630
Vehicles Capital at 1stJan 1999 3 000 Drawings 210 130 Total The following additional information is also available:-
82 500 210 130
/ http://www.principlesofing2.com/ 1. Stock at 31st Dec 1999 was valued at $ 5 200
2. General expenses of $ 400 have been paid for the year 2000 3. A debt of $ 200 is to be written off as bad debt
4. A provision is to be made for doubtful debts of 5% on Debtors at 31st Dec 1999 5. Depreciation for 1999 is to be provided as follows:Fixtures & Fittings at 10% using the straight line method Motor Vehicles at 20% using the reducing balance method Required to prepare:a. The Trading and Profit & loss for the year ended 31st Dec 1999 b. The Balance sheet at 31st Dec 1999 Incoming search :
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owing for motor vehicle expense in profit and loss accont preparation of final s with adjustments
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Principles Of ing Principles of ing Made Easy Home
Topics
Pricacy Policy ► ing
Search
Us ► Balance Sheet
► Principles
► Car Loan Credit
Business reporting Get Your Business Ahead - Stay Informed - Free Paper & Infographic www.Amadeus.com/BigData
http://principlesofing2.com/ http://principlesofing2.com/ Final s with adjustments The Final s of a sole trader ( With Adjustments)
The trading and profit & loss and balance sheet prepared at the end of a year is known as Final s. While preparing the final s, there may be some items so far not adjusted. These items are to be adjusted in the final s for calculating the correct profit or loss of the business. The usual adjustments in the final s are:a. Expenses owing :- These are the expenses incurred during the year but not paid in cash. This amount will be paid in the near future (next year). The owing expense is to be added with the amount of same expense already paid given in the trial balance and it should be shown in the balance sheet
Project Management Degree
as a current liability.
www.aiu.edu Bachelors in Project Management, Earn your Bachelor's Degree
Debit
The double entry for recording the expenses owing is
QuickBooks 2013 Original
Credit
Expenses Expenses owing
This expense is also known as outstanding expenses, expenses payable or expense payable. b. Prepaid expense. :- This is the expense paid during the year for the benefit of the next year. The portion of the expense which is prepaid is to be deducted from the total expenses already paid during the year (given in the trial balance) and shown as current asset in the balance sheet.
/ http://www.principlesofing2.com/ www.echesconsulta... Intuit Premier Reseller in Maldives Get the Best from the Best-7790989
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The double entry for recording the prepaid expense is Debit Credit
Prepaid expense and Expense
This expense is also known as expense paid in advance or unexpired expense c. Accrued income:- The income earned during the year but not received in cash is known as accrued income. The amount of accrued income is to be considered as current year’s income and added with the concerned income received during the year(given in the trial balance) and shown as a current asset in the balance sheet.
Non-Profit ing
The double entry for recording the accrued income is:
www.qwpage.com/ ing software specializing in all nonprofit organizations
Debit
Accrued income and
Credit
Income
The accrued income is also known as outstanding income.
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d. Income received in advance:- This is the income received during the year for the services to be rendered during the next year. Since this income is not related to the current year, it should be deducted from the concerned income (given in the trial balance) and shown as a current liability in the balance sheet. The double entry for recording the income received in advance is: Debit
Income and
Credit
Income received in advance
This is also known as unexpired income. e. Depreciation:- The part of the cost of a fixed asset that is consumed by a business during the period of its use is known as depreciation. It is considered as an expense in the business therefore shown as an expense in the profit & loss and deducted from the cost price of the concerned fixed asset in the balance sheet. The double entry for recording depreciation is:
http://principlesofing2.com/ http://principlesofing2.com/ Debit
Profit & loss and
Credit
Depreciation
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f. Bad debt:- The part of the amount of debtors which cannot be recovered is known as bad debt. It is an expense to be shown in the profit & loss . If the bad debt appears in the trial balance, it is known as bad debt written off and shown in the profit & loss only. If bad debt information appears among the adjustment points below the trial balance, then it should be shown as an expense in the profit & loss and shown as a deduction from the debtors in the balance sheet under the heading “current assets”. The double entry for recording the bad debt is: Debit
Bad debt and
http://principlesofing2.com/ http://principlesofing2.com/ Credit
Debtors
g. Goods drawings by the owner for his personal use:-
The amount of goods withdrawn by the owner for his personal use is to be considered as drawing. The double entry for recording the goods drawings is: Debit
Drawings and
Credit
Purchase or sales
The amount of goods drawings should be deducted form purchases and capital in the balance sheet. MCQ 1. A company which can offer its shares for subscription to the public is known as: A. Private company
B. Public limited company
C. Public corporation
D.Corporation
2. What is the authorized share capital of a limited company? A. The issued share capital
B. Issued share capital plus reserves
C. Issued share capital plus debentures D. The shares that a company is allowed to issue by law 3. The liability of share holders of a public limited company is limited to:
/ http://www.principlesofing2.com/ A. paid up value of shares
B. nominal value of shares
C. extent of private assets
D. called up share capital
4. What is the other name of authorized capital? A. issued capital
B. Nominal capital
C. Uncalled capital
D. Calls in arrears
5. The debenture interest paid is recorded in which part of the final s of a limited company? A. Trading
B. Profit and loss
C. Profit and loss appropriation
D. Balance sheet
6. The dividend is calculated on which of the following values of shares? A. Authorized share capital C. Called up share capital
B. Issued share capital D. Paid up share capital
7. Which of the following is not included in the share holders’ funds? A. Debentures
B. General reserves
C. Ordinary share capital
D. Preference share capital
8. Retained profit of a limited company belongs to the: A. directors’
B. debenture holders’
C. shareholders
D. company
9. Proposed dividends are; A. shown as a current liability on the balance sheet B. debited with other business expenses in the profit and loss C. paid from capital reserves D. credited to the appropriation 10. In the final s of a limited company, directors’ remuneration is: A. debited in the trading
B. debited in the profit and loss
C. debited in the appropriation
D. deducted from share capital in the B.S
11. Under which heading is share shown?
http://principlesofing2.com/ http://principlesofing2.com/ A. Current assets
B. Current liabilities
C. Share capital
D. Reserves & Surplus
12. The interim dividend paid is shown in the: A. profit and loss
B. profit and loss appropriation only
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C. profit and loss and balance sheet D. profit and loss appropriation and balance sheet Assignment Questions Q 1.
The following trial balance was taken from the books of a sole trader for the year ended
31st Dec 2003:Debit $
balances Purchase & sales
Credit $
92 300 5 200
Carriage inwards Drawings
1 90 300
5 000 4 500
Rent, rates & insurance Postage
http://principlesofing2.com/ http://principlesofing2.com/ 3 000 2 700
Stationery Capital
59 400
55 000
Machinery Buildings
45 000 15 000
Furniture & Fittings Debtors & Creditors
14 500
Commission received Opening stock
13 200 7 000
1 000 2 500
Cash at bank Cash in hand
1 800 250
Discounts Bad debt
3 920
800 22 120
Salaries & Wages Advertising
1 850 1 200
Carriage outwards Returns in & out
800 2 74 520
Total
700 2 74 520
Consider the following points at 31st December 2003:1. The closing stock was valued at $ 12 400
/ http://www.principlesofing2.com/ 2. Rent, rates & insurance was owing by & 500. `
3. Commission received in advance is $ 1 000.
4. Salaries & wages owing $ 880.
5. ment expense is prepaid by $ 350. 6. Carriage inwards payable $ 800. From the above information, you are required to prepare at 31st December 2003:a. The Trading & Profit & loss b. The Balance Sheet Q 2.
The following balances were extracted from the books of a sole trader
for the year ended 31st December 2003:Stock on 1st Jan 2003
12 300
Sales
Purchases 1 58 000
Rent paid
7 000
Motor Car
10 500
1 25 000
Discount received
Fixture & fittings
2 400 13 500
Advertising
1 960
Motor van expenses
1 120
Heating & lighting
1 200
Wages to assistant
6 000
ant’s fee
Insurance
700
Creditors
2 700
Bank overdraft
3 840
Drawings Capital Carriage inwards
9 000 27 210
Debtors
1 200 3 100
Cash in hand Bank charges Interest received License & taxes
1 000
250 270 1 400 500
Carriage outwards st
The following points are to be considered at 31
950
Dec 2003:-
1) The closing stock was valued at $ 10 500
2) Rent prepaid was $ 1 000
3) Motor van expenses owing
4) Interest earned but not received $ 600
$ 200
http://principlesofing2.com/ http://principlesofing2.com/ 5) Wages to assistant outstanding $ 1 200
6) License and taxes payable $ 300
From the above information, you are required to prepare:a. The trading & profit & loss for the year ended 31st Dec 2003-05-03
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b. The balance sheet at 31st Dec 2003.
Q 3.
The following trial balance was extracted from the books of a sole trader for the year ended
31st March 2003: balances Purchases & Sales
Debit
Returns Carriage inwards
$ Credit $ 39 600 76 000 300 450 1 200 900
Carriage outwards Opening stock
http://principlesofing2.com/ http://principlesofing2.com/ 5 200 7 550
Salaries Commission
670 3 000
Wages Debtors & Creditors
8 000 500
Discounts Plant & Machinery
4 200 800
19 000 450
Rates Furniture & Fittings
6 500 3 500
Bank overdraft Office expenses
150 600
General expenses Cash in hand
250 5 000
Bank Loan Capital 93 870
Total
3 920 93 870
Adjustments:1) The stock on 31-3-2003 was valued at $ 6 500 3) Rates prepaid $ 150
2) Carriage outwards was owing by $ 100
4) Rent for the year was earned but not received $ 700
5) General expenses owing $ 180
/ http://www.principlesofing2.com/ From the above information you are required to prepare at 31st March 2003:a. The Trading and profit & loss b. The Balance sheet Q 4.
The following trial balance was extracted from the books of Martin klin for
the year ended 31st Dec 2003:Debit balances Purchases Stock on 1-1-2003 Cash in hand Discount allowed Returns in Carriage outwards Rent & insurance Fixtures & Fittings Delivery van Debtors Drawings Wages & salaries General office expenses Total Adjustments:-
$ Credit balances 22 600Sales 5 200Capital 190Bank overdraft 1 400Discount received
$ 40 700 5 580 7 000 900
810Returns out 2 160Commission received 1 700Creditors 1 000
570 660 6 000
2 300 11 900 2 800 8 900 450 61 410Total
61 410
1. The closing stock was valued at $ 6 700 at 31st Dec 2003-05-03 2. Wages & salaries was owing by $ 1 100 3. General office expenses owing $ 150
http://principlesofing2.com/ http://principlesofing2.com/ 4. Rent prepaid is 280
5. Commission receivable $ 140
From the above information, Prepare:-
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a. The trading and profit & loss for the year ended 31st Dec 2003 b. The balance sheet at 31st Dec 2003
Q 5.
The following trial balance had been taken from the books of a sole trader for the year ended
31st Dec 2003: balances Purchases & sales
Debit $
Credit
70 000 1 500
Returns in & out Carriage inwards
$
1 46 000 1 600
6 000 3 000
Carriage outwards Discount received
http://principlesofing2.com/ http://principlesofing2.com/ 6 100
2 000
Telephone charges Rent paid
700 1 100
ment Debtors & Creditors
7 700
Bank loan Cash in hand
3 750 1 000
Power charges Salaries & wages
12 000 40 000
Premises at cost Plant at cost
35 000 15 000
Machinery at cost Motor car at cost
38 000 75 800
Capital Drawings Stock on 1-1-2003 Total Additional information:-
2 000 10 000
1 250 3 500 2 41 500
2 41 500
1. The stock on 31st Dec 2003 was valued at $ 4 750 2. Power charges unpaid at 31st Dec 2003 was $ 2 000 3. Salary paid in advance at 31st Dec 2003 was $ 3 000
/ http://www.principlesofing2.com/ 4. depreciate all the fixed assets @ 10 % p.a. on cost 5 Provide the provision for bad debts at $ 500
From the above , you are required to prepare:-
The trading and profit & loss for the year ended 31st Dec 2003 and a balance sheet
Q 6.
The following trial balance was taken from the books of a sole trader for the
Year ended 31st March 2004: balances Opening stock Purchases and Sales Carriage inwards Stationery Debtors & Creditors Plant & Machinery Buildings Furniture
Debit $ 2 000 25 600 1 400 500 8 000
44 600
6 000
10 000 11 000 4 000 1 000
Repairs to building Carriage out
1 600 9 800
Salaries & wages Office expenses
200 2 500
General expenses Drawings & Capital
2 500 1 200
Cash in hand Interest paid
200 2 100
Discount allowed & received Commission paid
30 700
3 000
200 1 500
Rent & rates Returns Bank Total Notes:-
Credit $
200
500 700
85 500
85 500
http://principlesofing2.com/ http://principlesofing2.com/ 1. The stock on 31-3-2004 was valued at $ 4 200
2. Salaries & wages owing for the year ended 31st March 2004 was $ 1 200 3. 2.5% of the debtors should be written off as bad debt
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4. Provide provision for depreciation on all the fixed assets @ 10% p.a. 5. Rent & rates paid in advance $ 200 6 The owner had taken goods costing $ 600 for his own use not entered in the books of the business Required prepare :a. The trading and profit & loss for the year ended 31st March 2004. b. The balance sheet at 31st March 2004. Following is the trial balance extracted from the books of Mr. Young, a sole trader, for the
Q7
Year ended 31st Dec 2002:-
http://principlesofing2.com/ http://principlesofing2.com/ balances
Debit $
Credit $ 37 470
Capital on 1st Jan 2002 Debtors & Creditors Premises
1 500 50 000
Loan ( payable after 5 years) Furniture & Equipment at cost
10 000
10 000 4 000
Provision for depreciation on Furniture& equipment 120 750
Cash in hand Maintenance cost of equipment Stock on 1-1-2002 Drawings
250
1 500 12 000
Rates Heating & lighting
1 100 1 300
Postage &telegram Repairs to premises
1 250 1 400
Purchases and sales Wages
14 000 1 800
45 000
96 720
96 720
Total
Prepare Trading and profit & loss for the year ended 31st Dec 2002 and the balance as at that date after taking into the following:-
sheet
1. The closing stock was valued at $ 2 700
/ http://www.principlesofing2.com/ 2. Heating & lighting unpaid at 31-12-02 was $ 250
3. Depreciate furniture & equipment by 10% on cost. 4. Rates paid in advance at the year end was $ 100
5. Interest on loan for the whole year @ 10% p.a. is outstanding The following trial balance was taken from the books of a sole trader for the year ended
Q 8. st
31
Dec 2002:-
balances Purchase & sales Returns in & out Carriage General expenses Salaries & wages Commission Discount from creditors Discount to debtors Interest Rent Rates & taxes ment Office expenses Bad debt Furniture Land & buildings Plant & Machinery Provision for depreciation on :-
Debit $ Credit $ 68 000 1 20 210 1 000 7 700 360 13 760 600 300 550 1 000 2 500 870 1 010 750 1 200 5 000 30 000 15 000 500
Furniture Plant & machinery Land & building Debtors & creditors Drawings & capital Provision for bad debt
700
1 500 3 000 8 000 2 000
4 500 38 920
http://principlesofing2.com/ http://principlesofing2.com/ Cash in hand Cash at bank
Opening stock Total
760
3 120 4 000 5 000
1 70 990
1 70 990
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Adjustments:1. The stock at the end was valued at $ 6 250 2. Salaries and wages owing at the end of the year was $ 1 240 3. Commission accrued $ 200 4. Increase the provision for bad debts by $ 240 5. Provide the provision for depreciation on all the fixed assets @ 10% p.a. 6. $ 4 500 of the carriage represents carriage on goods purchased 7. The owner had taken goods costing $ 900 for his own use, not recorded in the books Prepare the set of final s at 31st Dec 2002
http://principlesofing2.com/ http://principlesofing2.com/
The trial balance shown below was extracted from the books of a sole trader for the year ended
Q 9. st
31
March 2003:-
balances Purchases & Sales
Debit $ Credit $ 60 000 1 26 000 1 500 1 600
Returns inwards and outwards Carriage inwards
600 300
Carriage outwards Discount received
3 100 700
Rent paid Communication expenses
2 000 1 100
ment Debtors and creditors
5 000
Bank loan (long term) Cash in hand
2 000 10 000
3 750 1 000
Power charges Salaries & wages
12 000 50 000
Premises Plant
25 000 10 000
Machinery Motor Car
40 000
/ http://www.principlesofing2.com/ 75 000
Capital Drawings
1 250 3 500
Stock on 1-1-2003 Total
2 17 700
2 17 700
1. Stock at 31st March 2003 was valued at $ 4 750
Notes:-
2. Power charges unpaid at the end of the year was $ 2 000 3. Salaries paid in advance at the end of the year was $ 3 000 4. Depreciate all the fixed assets @ 10% p.a. 5. Interest on bank loan @ 7% p.a. is owing for the whole year 6. Create the provision for bad debt at 5% on debtors. Prepare the set of final s as at 31st Dec 2003
Q 10.
The following trial balance was taken form the books of Alfred for the year ended 31-12-03
Debit balances Returns inwards Drawings Land & building Plant & machinery Debtors Purchases Rent Postage & telegram Advertising Cash in hand Stock on 1-1-03 Wages Telephone charges Salaries Printing & Stationery Commission Travelling
$
Credit balances 30 00Capital 70 00Creditors 20 000Sales 45 000Provision for bad debts 40 500Purchase returns 85 000
$ 1 00 000 26 000 1 69 000 1 000 4 000
3 000 500 10 000 10 500 23 000 13 000 500 13 250 890 5 100 1 500 6 300
http://principlesofing2.com/ http://principlesofing2.com/ Carriage inwards Motor van
Cash at bank Total
1 900 10 060
3 00 000 Total
3 00 000
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Adjustments:1. The closing stock was valued at $ 15 000 2. Rent owed by $ 600 3. Salaries Payable at the end of the year was $ 250 4. Commission paid in advance was $ 1 100 5. Provide for the provision for bad debt at 5% on the year end debtors 6. Depreciate land and building @ 5% , Plant and Machinery and Motor Van @ 10% p.a. on cost Required to prepare at 31st Dec 2003:a. The trading & profit & loss
b. The balance sheet
http://principlesofing2.com/ http://principlesofing2.com/ Q 11.
The following trial balance was related to a sole trader at 31st Dec 2003
balances Purchases & Sales Opening stock Carriage outwards
Debit $
Credit $
11 556 3 776
18 000
326 234
Carriage inwards Returns
355
440 2 447
Salaries & wages Motor expenses
664 576
Rent Sundry expenses
1 202 2 400
Motor vehicles Fixtures & fittings
600 4 577
Debtors & Creditors Provision for bad debts
3 000 600 200
Prov: for depreciation : Motor vehicle Fixtures &
50
Fittings Cash at bank
3 876 120
Cash in hand Drawings and capital
2 050 34 844
Total Adjustments:-
12 639 34 844
/ http://www.principlesofing2.com/ 1) The closing stock was valued at $ 4 998
2) Salaries and wages unpaid at the end of the year was $ 533 3) Depreciate motor vehicle @ 10% and Fixture & fittings @ 5% p.a. on cost 4) Rent paid in advance was $ 176
5) Carriage inwards owing was $ 66
6) Increase the provision for bad debts to $ 800 From the above information, you are required to prepare the set of final s at 31st Dec 2003
Q 12.
From the following trial balance, prepare trading and profit & loss and balance sheet
at 31st Dec 2001:Debit $
balances Capital Plant & machinery Salaries
18 000 8 500
Repairs Wages
1 600 28 000
Cash in hand Land & buildings
2 500 74 500 1 23 500
Purchases & Sales Bank overdraft
1 500
Provision for bad debt Debtors & Creditors
45 000
500 26 300 8 000 500
Discount received Prov. For depreciation : Plant & machinery
1 500
Land & Buildings Stock on 1st Jan 2001 Advertising
2 49 000 3 800
1 500
Discount allowed Commission received
Bad debts
Credit $ 50 000
1 000 37 000 600
http://principlesofing2.com/ http://principlesofing2.com/ Office expenses Fixtures & fittings
1 000 4 000
Stationery Interest
400 2 000
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1 500
Rent & rates Bank loan ( long term )
9 500 350600
Total Adjustments:-
350600
1. The closing stock was valued at $ 30 000 2. Salaries owing amounted to $ 1 500 and repairs outstanding $ 400 3. Commission received in advance $ 300 4. The provision for bad debts should be at 1% of the year end debtors 5. Depreciate all the fixed assets @ 10% p.a. on cost 6. Rent & rates was prepaid by $ 200
http://principlesofing2.com/ http://principlesofing2.com/ 7. Goods taken by the owner for his personal use not recorded in the books $ 1 000
Q 13.
T. Burton is a retailer whose trial balance at 31st Dec 1999 is given below:-
balances Purchases & Sales
Debit $
Credit $
72 000
1 19 400 750
Returns Carriage inwards Wages and salaries General expense Cash at bank Petty cash Premises Fixtures & Fittings Stock on 1st Jan 1999 Trade Debtors & Creditors Motor Vehicles at cost Provision for depreciation on Motor
930 27 670 4 750 4 210 150 62 520 9 000 5 550 7 200 13 150
4 850 2 630
Vehicles Capital at 1stJan 1999 3 000 Drawings 210 130 Total The following additional information is also available:-
82 500 210 130
/ http://www.principlesofing2.com/ 1. Stock at 31st Dec 1999 was valued at $ 5 200
2. General expenses of $ 400 have been paid for the year 2000 3. A debt of $ 200 is to be written off as bad debt
4. A provision is to be made for doubtful debts of 5% on Debtors at 31st Dec 1999 5. Depreciation for 1999 is to be provided as follows:Fixtures & Fittings at 10% using the straight line method Motor Vehicles at 20% using the reducing balance method Required to prepare:a. The Trading and Profit & loss for the year ended 31st Dec 1999 b. The Balance sheet at 31st Dec 1999 Incoming search :
final s
adjustments in final s of a partnership firm Final s with adjustments
partnership final s adjustments ing adjustment in P/L a/c final s questions with adjustments final s with adjustment
owing for motor vehicle expense in profit and loss accont preparation of final s with adjustments
trial balance adjustments and final s
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