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:
- Depreciate fixed assets by 20%.
- Rent payable Rs.15,000.
- Prepaid insurance expired of Rs.2,000.
- Declared dividend @ 15% on common stock.
Required:
- Adjusting entries
- 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:
- Depreciate fixed assets by 10%
- Supplies in hand Rs.2,000
- Outstanding office expenses Rs.2,000
- Prepaid salaries Rs.3,000
- Provision for bad debts 5%
Required:
- Necessary adjusting entries
- Adjusted trial balance
