QUESTION 2

1. Q No 2: Imran and co. presented following data on Sep 30, 2002

Title of account		Debit	Credit
Cash		51,000
A/c Receivable		25,600
Stationary		1500
Insurance expense		300
Equipment		68,000
Furniture		69300
Traveling expense		5000
A/c payable			14,300
Allowance for depreciation- equipment			5,000
Allowance for depreciation-furniture			18,600
Service revenue			85,300
Salaries expense		24000
Advertising expense		4500
Drawing		17000
Interest expense		1200
Capital			144,200

267400 267400

Additional data:

1. Bad debts estimated 5% of A/c recivable
2. Depreciation on furniture 10%
3. Depreciation on equipment 10%
4. Salaries outstanding Rs.2700
5. Interest payable Rs. 400
6. Stationary used by company Rs.900
7. Traveling expense is outstanding Rs.1000

Required:

prepare adjusting entries

prepare adjusted trial balance