Take Adjusted Trial Balance and make following

Required: Income Statement, Retained Earning Statement, Balance Sheet

20 transactions are as follows:-

Date	Particuars	Debit	Credit
1	Cash A/c Dr. To Capital A/c (Being Business started with initial capital)	200000	200000
2	Bank A/c Dr. To Cash A/c (Being Cash Deposited in Bank)	175000	175000
3	Furniture A/c Dr. To Bank A/c (Being office furniture purchased)	25000	25000
4	Bank A/c Dr. To Sales A/c (Being goods Sold and amount recieved)	50000	50000
5	Sam Traders A/c Dr. To Sales A/c (being goods sold on credit)	30000	30000
6	Purchase A/c Dr. To Bank A/c (Being goods purchased)	60000	60000
7	Purchase A/c Dr. To Tom Traders A/c (Being goods purchased on credit)	20000	20000
8	Salary A/c Dr. To Bank A/c (Being Salary paid to employees)	10000	10000
9	Office Expenses A/c Dr. To Bank (Being office expenses paid)	5000	5000
10	Office Rent A/c Dr. To Bank (Being Office rent paid)	15000	15000
11	Commision Paid A/c Dr. To Bank (Being Commision paid)	3000	3000
12	Bank A/c Dr. To Interest Received (Being int received from bank)	1000	1000
13	Cash A/c Dr. To Bank (being cash withdrawn)	10000	10000
14	Office Equipments A/c Dr. To Bank (Paid for Office equioments)	35000	35000
15	Bank A/c Dr. To Sam traders (Received from Sam)	30000	30000
16	Tom traders A/c Dr. To bank (Being paid to tom)	20000	20000
17	Vehicle A/c Dr. To Bank	25000	25000
18	Elecrticity Exp A/c Dr. To Bank	2000	2000
19	Stationery A/c Dr. To Bank	3000	3000
20	Travelling Expenses A/c Dr. To Bank	4000	4000

Ledger Accounts

Bank A/c

Date	Particulars	Debit	Date	Particulars	Credit
2	To cash	175000	3	By Furniture	25000
4	To Sales	50000	6	By Purchase	60000
12	To Interest Recd.	1000	8	By Salary	10000
15	To Sam Traders	30000	9	By Office expense	5000
			10	By office rent	15000
			11	By Commision paid	3000
			13	By Cash	10000
			14	By Office Equipments	35000
			16	By Tom traders	20000
			17	By Vehicle	25000
			18	By electricity	2000
			19	By Stationery	3000
			20	By travelling	4000
				By bal c/d	39000
	Total	256000		Total	256000

Hint:- Student can easily prepare other ledger account seeing this Bank Ledger above as there are very few transactions in the remaining ledger accounts.

Trial balance

Particulars	Debit	Credit
Cash	35000
Capital		200000
Bank	39000
Furniture	25000
Sales		80000
Purchases	80000
Salary	10000
Office Expense	5000
Office Rent	15000
Commison	3000
Office Equipment	35000
Vehicle	25000
Electricity	2000
Stationery	3000
Travelling	4000
Interest Received		1000
Total	281000	281000

Adjusting Entries

S.No.	particulars	Debit	Credit
1	Depreciation On FurnitureA/c Dr. To Fruniture	2000	2000
2	Depreciation On Office Equipment Dr. To Office Equipme3nt	3000	3000
3	Depreciation On Vehicle A/c Dr. To Vehicle	1000	1000
4	Prepaid Rent A/c Dr. To Bank	1000	1000
5	Electricity A/c Dr. To Accrued Exp.	500	500
6	Prepaid Stationery A/c Dr. To Bank.	1000	1000
7	Travelling Exp a/c Dr. To Accrued Exp.	3000	3000
8	Prepaid salary Dr. To Bank	2000	2000
9	Commison Dr. To Accrued Exp.	5000	5000
10	Bank A/c Dr. To Unearned Interest	4000	4000
11	Profit & Loss A/c Dr. To Provison for Bad Debts	10000	10000
12	Profit & Loss A/c Dr. To Provision For Gratuity	6000	6000
13	Profit & Loss A/c Dr. To Provison For Employee benfit expense	12000	12000
14	Profit & Loss A/c Dr. To Provision for income tax	3000	3000
15	Profit & Loss A/c Dr. To Provision for bad Debts	2000	2000
16	Profit & Loss A/c Dr. To provision for Contingent liabilites	7000	7000
17	Drawings A/c Dr. To Purchases	5000	5000
18	Free Samples A/c Dr. To Purchases	3000	3000
19	Donation A/c Dr. To Purchases	2000	2000
20	Loss by Fire A/c Dr. To Purchases	5000	5000

ADJUSTED TRIAL BALANCE

Particulars	Debit	Credit
Cash	35000
Capital		185000
Bank	39000
Furniture(Less Depreciation)	23000
Sales		80000
Purchases	65000
Salary	10000
Office Expense	5000
Office Rent	15000
Commison	8000
Office Equipment	32000
Vehicle	24000
Electricity	2500
Stationery	3000
Travelling	7000
Interest Received		1000
Provision(Cumulative Total)		40000
Profit & Loss	40000
Depreciation(Cumulative Total)	6000
Prepaid Expenses	4000
Accrued Expenses		8500
Unearned Interst		4000
Total	318500	318500

Note :- Figures in above adjusted Trial Balnce have been arrived after giving suitable treatment to adjustment entries