Question 13:
(Closing Entries). Give the necessary
entries in the Journal Proper of Ram on 31st March, 2024 to close his books:
Freehold Premises `30,000;
Plant and Machinery `20,000;
Sundry Debtors `25,000;
Purchases `37,500;
Sales `95,000;
Discount (Dr.) `150;
Discount (Cr.) `175;
Sundry Creditors `12,500;
Carriage Inwards `375;
Carriage Outwards `600;
Furniture and Fixtures `2,500;
Wages `5,000;
Bad debts `750;
Salaries `3,600;
Commission (Cr.) `2,125;
Capital Account − `25,000;
Bills Payable `7,500;
Bills Receivable `9,000;
Trade Expenses `2,550;
Opening stock `22,075;
Closing Stock `10,000;
Ram's Loan Account `20,000;
Cash in Hand `75;
Cash at Bank `3,125.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Trading
A/c |
Dr. |
|
64,950 |
|
|
|
To Opening stock A/c
To Purchases A/c |
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22,075 37,500 |
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|
To Carriage Inwards A/c |
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|
375 |
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To Wages A/c |
|
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|
5,000 |
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(Being
Direct expenses
debited to Trading A/c) |
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Sales
A/c |
Dr. |
|
95,000 |
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Closing
Stock A/c |
Dr. |
|
10,000 |
|
|
|
To Trading A/c |
|
|
|
1,05,000 |
|
|
(Being
Sales credited to
Trading A/c) |
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Trading
A/c |
Dr. |
|
40,050 |
|
|
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To Profit & Loss A/c |
|
|
|
40,050, |
|
|
(Being
Transfer of gross
profit to Profit &Loss A/c) |
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Profit
& Loss A/c |
Dr. |
|
7,650 |
|
|
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To Discount A/c |
|
|
|
150 |
|
|
To Carriage Outwards A/c |
|
|
|
600 |
|
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To Bad Debts A/c |
|
|
|
750 |
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To Salaries A/c |
|
|
|
3,600 |
|
|
To Trade Expenses A/c |
|
|
|
2,550 |
|
|
(Being
Indirect expenses
debited to P&L A/c) |
|
|
|
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Discount
A/c |
Dr. |
|
175 |
|
|
|
Commission
A/c |
Dr. |
|
2,125 |
|
|
|
To Profit & Loss A/c |
|
|
|
2,300 |
|
|
(Being
Indirect incomes
credited to P&L A/c) |
|
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|
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Profit
& Loss A/c |
Dr. |
|
34,700 |
|
|
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To Capital A/c |
|
|
|
34,700 |
|
|
(Being
Transfer of net
profit to Capital A/c) |
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Question 14:
(Adjustment Entries) From the following information available on
31st March, 2024, pass the necessary Adjustment Entries in the Journal for the
year ending on that date:
(i) Interest accrued `2,500.
(ii) Wages for March, 2024 outstanding `10,000.
(iii) Insurance prepaid `1,500.
(iv) Commission due to manager 6% on net profit after charging such commission.
The profit before charging such commission was `1,06,000.
(v) Interest due on loan but not paid. Loan of `1,50,000 was taken at 9% p.a. 9 months
before end of the year.
Answer:
|
Journal |
||||||
|
S. No. |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
||
|
2024 |
|
|
|
|
||
|
March 31 |
Accrued
Interest A/c |
Dr. |
|
2,500 |
|
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To Interest A/c |
|
|
2,500 |
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|
(Interest
accrued) |
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March 31 |
Wages A/c |
Dr. |
|
10,000 |
|
|
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|
To Wages Outstanding A/c |
|
|
10,000 |
||
|
|
(Wages for
the month of March outstanding) |
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March 31 |
Prepaid
Insurance A/c |
Dr. |
|
1,500 |
|
|
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To Insurance A/c |
|
|
1,500 |
||
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(Insurance
paid in advance) |
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March 31 |
Manager’s
Commission A/c |
Dr. |
|
6,000 |
|
|
|
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To Manager’s Commission Payable
A/c |
|
|
6,000 |
||
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|
(Manager Commission Charged on
Net Profit) |
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Note:
Manager’s Commission=1,06,000×6/106 |
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March 31 |
Interest
on Loan A/c |
Dr. |
|
10,125 |
|
|
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To Interest Outstanding A/c |
|
|
10,125 |
||
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|
(Interest
on Loan Outstanding for 9 months) |
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Note:
Interest on Loan=1,05,000×9×9/100×12 |
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Ts Grewal Solution 2024-2025
Class 11th
Chapter 11 – Special Purpose Book II – Other Books