Very Short Question Answer

The financial position of Kalika & Bros. on Baishakh 01, 2076 is as below:

Cash in hand: Rs.20,000

Furniture: Rs.50,000

Accounts receivable: Rs.74,000

Outstanding expenses: Rs.4,000

Cash at bank: Rs.36,000

Accounts payable: Rs.34,000

Stock of goods: Rs.26,000

Prepaid expenses: Rs.8,000

Required: Opening entry

SOLUTION

 

The following information is provided to you:

Cash in hand: Rs.10,000

Inventory: Rs.10,000

Land and building: Rs.50,000

Bank overdraft: Rs.10,000

Sundry debtors: Rs.20,000

Plant: Rs.30,000

Sundry creditors: Rs.40,000

Required: Opening entry

SOLUTION

Long Question Answer

A trial Balance on 30th Ashadh 2076, before recording any adjusting entries is as follows:

Unadjusted Trial Balance

As on 30th Ashadh 2076

Adjustments:

  1. Depreciate fixed assets by 20%.
  2. Rent payable Rs.15,000.
  3. Prepaid insurance expired of Rs.2,000.
  4. Declared dividend @ 15% on common stock.

Required:

  1. Adjusting entries
  2. Adjusted trial balance

SOLUTION

 

 

A leading service firm providing variety of services in western region provides you a trial balance on 30th Ashad 2076, before recording any adjusting entries:

Unadjusted Trial Balance

30th Ashadh 2076

Adjustments:

  1. Depreciate fixed assets by 10%
  2. Supplies in hand Rs.2,000
  3. Outstanding office expenses Rs.2,000
  4. Prepaid salaries Rs.3,000
  5. Provision for bad debts 5%

Required:

  1. Necessary adjusting entries
  2. Adjusted trial balance

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