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r28 Mar 31 Depreciation Account Dr. 4,000 To Plant and Machinery Account 4,000 Being the adjustment entry for Depreciation) Mar 31 Prepaid Insurance Account Dr.
r28 Mar 31 Depreciation Account Dr. 4,000 To Plant and Machinery Account 4,000 Being the adjustment entry for Depreciation) Mar 31 Prepaid Insurance Account Dr. 150 To Insurance Account 150 Being the adjustment entry for prepaid insurance) Mar 31 Accrued Income Account 1,500 To Income on Investment Account 1,500 (Being the adjustment entry for accrued income) Illustration V. From the following Trial Balance of Mr. Garg as on 31" March, 2006, prepare Trading Account, Profit and Loss Account and Balance Sheet TRIAL BALANCE Debit Balance Rs. Credit Balance Rs. Stock on 1" April, 2005 500 Capital 2.000 Purchases 1,500 Sales 3,500 Land and Building 2.000 Sunday Creditors 750 Bills Receivable 300 Commission 50 Wagen 300 Bills payable 300 Machinery 800 Loan 600 Carriage Inward 100 Carriage Outward 100 Power 150 Salaries 200 Discount Allowed 30 Drawings 100 Insurance Premium 20 Cash at Bank 500 Cash in Hand 100 Investments 500 7,200 7,200 Adjustments 1. Stock as on 31 March 2006 is valued at Rs.200. 2. Provide depreciation @ 10% on Machinery and @5% on Land and Building 3. Outstanding salaries amounted to Rs.50. Insurance premium is paid in advance to the extent of Rs.10. Allow interest on Capital @ 6% per annum. Interest on loan @ 12% per annum is due for one year. 4. 5. 6
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