Question
Prepare the Trial balance, Profit & Loss Account, and Balance Sheet incorporating the adjustment entries. Ledger Balances (SR) Opening stock 6 000 Capital 40 000
Prepare the Trial balance, Profit & Loss Account, and Balance Sheet incorporating the adjustment entries.
Ledger Balances | (SR) |
Opening stock | 6 000 |
Capital | 40 000 |
Salary | 6 000 |
Drawings | 6 000 |
Carriage inwards | 1 000 |
Carriage outwards | 500 |
Return inwards | 800 |
Return outwards | 500 |
Loan given to X | 3 000 |
Loan taken from Y | 5 000 |
Rent expense | 1 200 |
Rent outstanding | 100 |
Purchases | 60 000 |
Accounts Receivable | 30 000 |
Accounts payable | 13 000 |
Advertisement expense | 3 000 |
Liability of other expenses | 2 900 |
Bad debt | 500 |
Discount received | 300 |
Discount allowed | 600 |
Cash | 2,200 |
Furniture | 3 000 |
Goodwill | 5 000 |
Wages | 100 |
Sales | 73 700 |
Insurance premium | 600 |
Rent from subletting | 500 |
Bank | 6 500 |
Adjustment entries:
- Closing stock SR 9 500
- Provide depreciation on furniture @10%
- Loan to X carries 8% interest per annum.
- Loan from Y carries 6% interest per annum.
- Provide 5% reserve for bad and doubtful debts
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