Final Accounts of Sole Trading Concerns Illustration 15 211 From the following trial balance of Mr.Shantharaj as at 31st March 2019, prepare final accounts after taking into account the following adjustments: Closing stock *2,00,000 Prepaid insurance *2,000 Interest on capital 5% p.a. (a) (b) (c) (d) Outstanding wages 3,000, Salaries 2,000 (e) (f) Provide for additional bad debts 4,000 (g) (h) (i) (i) Commission earned but not received 2,000 Provide interest on drawings account at 6% of six months only Create reserve for bad debts at 5% and reserve for discount on debtors at 5% Create reserve for discount on creditors at 2% (k) (L) Rent outstanding (office) 4,000 Depreciation is to be provided at 10% on furniture and plant and machinery Appreciation on buildings at 10%. Trial Balance Particulars Shantharaj's capital Debit Credit 3,00,000 Shantharaj's drawings Plant and machinery Stock on 1st April 2018 Purchases Sales Returns inwards Returns outwards Sundry debtors 26,000 1,20,000 50,000 3,50,000 5,00,000 20,000 10,000 80,000 Sundry creditors 60,000 Carriage inwards 5,000 Carriage outwards 5,000 Wages 30,000 Salaries 20,000 Factory rent 2,000 Office rent 5,000 Insurance 5,000 Discount received 6,000 Discount allowed 3,000 Furniture 20,000 Bad debts 4,000 Commission Buildings Bills payable Bills receivable Cash in hand Cash at bank 8,96,000 8,96,000 3,000 80,000 20,000 60,000 2,000 6,000