From the following Trial Balance of Durga Caf, prepare the final accounts after making adjustments given below:

Adjustments:

1. Stock on 31.12.2005 was valued at 2. Interest on Raju's loan accrued due 26,000. 1500. 3. Goods used for personal use 1800 but no record was made for it. (Hint: Deduct from Purchases in Trading A/c and deduct from Capital as Drawings in the Balance sheet.) 4. Stationery goods used out of stock amounted to 600. (Hint: Deduct from the Opening Stock in Trading A/c and show in the Debit side of P&L A/c as "Stationery A/c".)

5. Goods of the cost of 1600 were distributed as free samples. (Hint: Deduct from Purchases A/c in the Trading A/c and show as "Advertisement" in the debit side of P&L A/c.) 6. Depreciate machinery @ 5%.

Transcribed Image Text:

Debit Balances Credit Balances Purchases 1,05,000 Capital 52,000 Returns 3500 Sales 1,53,500 Stock 1.1.2005 20,000 Returns 5000 Freight 3000 Discount 1300 Power 2000 Loan from Raju 10,000 Wages 7000 Sundry Creditors 12,500 Factory Rent 3000 Bills Payable 5800 Office Rent 3150 Interest from Bank 700 Heating and Lighting 1750 Office expenses 1700 Commission on Sales 1400 Repairs 1300 Sundry Debtors 12,000 Bills Receivable 6500 Free Lands 19,000 Machinery 25,000 Motor Vans 21,000 Cash at bank 4500 2,40,800 2,40,800