Concept of Worksheet
The worksheet is not a formal step in the accounting cycle; it is the rough work.
It is the paperwork.
It is prepared by an accountant regarding adjustment entries.
Therefore, it is called a scratch pad.
It is prepared at end-of-period for the preview of the financial statements.
The worksheet is also known as extended trial balance (ETB).
This terminology is quite popular in British Accounting Literature.
If there is any transaction related to profit and loss account appropriation account (retained earning account), it becomes 12 column cash book; such as:
In trial balance: |
In adjustments: |
Profit and loss account appropriation account |
Proposed dividend |
Net profit last year |
General reserve |
Provision for taxation last year |
Capital reserve |
Tax paid of last year etc. |
Dividend equalization fund |
|
Asset replacement fund etc. |
Bad debts on debtors or credit sales |
|
Amortization/write off on Intangible assets |
||
Bad debts account |
Dr |
Amortization/ write off account |
Dr |
|
To Debtors (B/R, A/R) account |
|
To Intangible assets account |
|
|
(Being – bad debts on debtors) |
|
(Being – intangible/fictitious assets write off) |
|
|
Provision for bad debts |
|
Advance income received |
Dr |
|
Provision for bad debts account |
Dr |
Income^ (by name) account |
|
|
To Debtors (B/R, A/R) account |
|
To Advance income^ account |
|
|
(Being – provision for bad debts on debtors) |
|
(Being – income received in advance) |
|
|
Bad debts received which was written off |
|
Expenses expired from advance |
|
|
Cash/bank account |
Dr |
Expenses expired account |
Dr |
|
To Bad debt (recovered) account |
|
To Advance expenses account |
|
|
(Being – bad debts received from debtors) |
|
(Being – expenses expired from advance) |
|
|
Depreciation charged on assets |
|
Goods lost by fire or theft |
|
|
Depreciation account |
Dr |
Insurance claim account |
Dr |
|
To Assets (by name) account |
|
Profit and loss account |
Dr |
|
(Being – depreciation charged on assets) |
|
To Purchase account |
|
|
|
|
(Being – goods destroyed by fire) |
|
|
Appreciation on assets |
|
Closing stock |
|
|
Assets (by name) account |
Dr |
Closing stock account |
Dr |
|
To Appreciation account |
|
To Trading account |
|
|
(Being – appreciation on assets) |
|
(Being – closing stock recorded) |
|
|
Expenses outstanding, payable or due |
|
Proposed dividend |
|
|
Expenses* (by name) account |
Dr |
P&L appropriation account |
Dr |
|
To Outstanding expenses* account |
|
To Proposed dividend account |
|
|
(Being – expenses due, payable, outstanding) |
|
(Being – proposed dividend payable) |
|
|
Prepaid/advance expenses paid |
|
Provision for tax |
|
|
Prepaid expenses# account |
Dr |
P&L account |
Dr |
|
To Expenses# |
|
To Provision for tax account |
|
|
(Being – expenses paid in advance) |
|
(Being – tax payable) |
|
|
Accrued income (income earned but not received) |
Transfer to reserve and fund |
|
||
Accrued Income+ account |
Dr |
P&L appropriation account |
Dr |
|
To Income+ account |
|
To General/capital reserve |
|
|
(Being – income earned but not received) |
|
(Being – transferred to reserve and fund) |
|
|
Step 1: Write the debit balance of ledgers on the debit side and the credit balance of ledgers on the credit side.
Step 2: Write adjustment entries two times i.e. one entry on the debit side and another entry on the credit side.
Step 3: Now, unadjusted trial balance and adjustments are added or subtracted to the adjusted trial balance.
Step 4: both debit and credit sides are added to find out equal.
Here, debit and debit |
= add Dr 100 + Dr 80 |
= Dr 180 |
Credit and credit |
= add Cr 50 + Cr 40 |
= Cr 90 |
Debit and credit = write more amount as debit or credit Dr 80 and Cr 30 = Dr 50 |
||
Credit and debit = write more amount as debit or credit Cr 70 and Dr 40 = Cr 30 |
Step 5: From adjusted trial balance, transfer amount into income statement, P&L appropriation and balance sheet respectively,
Step 6: After transferring the entire amount into a related place, find out net profit or net loss from the income statement,
Step 7: Transfer net profit into credit side of P&L appropriation account (if a net loss, transfer into the debit side)
Step 8: After transferring the net profit or net loss, find out surplus or deficit from P&L appropriation account,
Step 9: Transfer surplus into liabilities side of the balance sheet (deficit into assets side of the balance sheet),
Step 10: Do the sum of the balance sheet. Assets and liabilities must be equal.
Keep in Mind (KIM)
We should prepare 12 columns worksheet on the following conditions: |
When profit and loss appropriation account, net profit last year, provision for tax last year, interim dividend etc are given in the trial balance |
or |
Proposed dividend, general reserve etc are given in adjustment, |
#####
Click on link for YouTube videos |
|
Accounting for Share |
|
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
#####
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2A
The trial balance of ABC Limited Company as on 31 December 2020 is given below:
Particulars |
Amount Dr |
Particulars |
Amount Cr |
Opening stock |
40,000 |
Share capital |
100,000 |
Purchase |
200,000 |
Sales |
300,000 |
Wages |
20,000 |
P&L Appn account |
50,000 |
Salaries |
30,000 |
Creditors |
30,000 |
Rent |
24,000 |
Sundry income |
20,000 |
Cash |
36,000 |
|
|
Debtors |
50,000 |
|
|
Machinery |
100,000 |
|
|
|
500,000 |
|
500,000 |
Additional information:
a. Wages outstanding Rs 5,000
b. Depreciation on machinery by 10%
c. Proposed dividend @ 10%
d. Closing stock was valued Rs 50,000
Required: Journal entry and work sheet
[Answer: Adjustment = Rs 75,000; Adjusted TB = Rs 565,000;
Net profit = Rs 41,000; Surplus = Rs 81,000; Balance sheet = Rs 226,000]
SOLUTION:
Journal Entries
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
a |
Wages account |
Dr |
|
5,000 |
|
|
To Outstanding wages account |
|
|
|
5,000 |
|
(Being: wages payable) |
|
|
|
|
b |
Depreciation account |
Dr |
|
10,000 |
|
|
To Machinery account |
|
|
|
10,000 |
|
(Being: depreciation charged on 100,000@ 10%) |
|
|
|
|
c |
P&L appropriation account |
Dr |
|
10,000 |
|
|
To Proposed dividend account |
|
|
|
10,000 |
|
(Being: dividend proposed on capital 100,000@ 10%) |
|
|
|
|
d |
Closing stock |
Dr |
|
50,000 |
|
|
To Income statement (trading account) |
|
|
|
50,000 |
|
(Being: closing stock recorded) |
|
|
|
|
Twelve Columns Work Sheet
Particulars |
Part 1 |
Part 2 |
Part 3 |
Part 4 |
Part 5 |
Part 6 |
||||||
|
Trial balance |
Adjustments |
Adjusted TB |
Income statement |
P&L Appn |
Balance sheet |
||||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
A |
L |
Opening stock |
40,000 |
|
|
|
40,000 |
|
40,000 |
|
|
|
|
|
Purchase |
200,000 |
|
|
|
200,000 |
|
200,000 |
|
|
|
|
|
Wages |
20,000 |
|
5,000a |
|
25,000 |
|
25,000 |
|
|
|
|
|
Salaries |
30,000 |
|
|
|
30,000 |
|
30,000 |
|
|
|
|
|
Rent |
24,000 |
|
|
|
24,000 |
|
24,000 |
|
|
|
|
|
Cash |
36,000 |
|
|
|
36,000 |
|
|
|
|
|
36,000 |
|
Debtors |
50,000 |
|
|
|
50,000 |
|
|
|
|
|
50,000 |
|
Machinery |
100,000 |
|
|
10,000b |
90,000 |
|
|
|
|
|
90,000 |
|
Share capital |
|
100,000 |
|
|
|
100,000 |
|
|
|
|
|
100,000 |
Sales |
|
300,000 |
|
|
|
300,000 |
|
300,000 |
|
|
|
|
P&L Appn account |
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
Creditors |
|
30,000 |
|
|
|
30,000 |
|
|
|
|
|
30,000 |
Sundry income |
|
20,000 |
|
|
|
20,000 |
|
20,000 |
|
|
|
|
|
500,000 |
500,000 |
|
|
|
|
|
|
|
|
|
|
Outstanding wages |
|
|
|
5,000a |
|
5,000 |
|
|
|
|
|
5,000 |
Depn on mach. |
|
|
10,000b |
|
10,000 |
|
10,000 |
|
|
|
|
|
Proposed dividend |
|
|
10,000c |
10,000c |
10,000 |
10,000 |
|
|
10,000 |
|
|
10,000 |
Closing stock |
|
|
50,000 |
50,000d |
50,000d |
50,000 |
|
50,000 |
|
|
50,000 |
|
Net profit (b/f) |
|
|
|
|
|
|
41,000* |
|
|
41,000* |
|
|
Surplus (b/f) |
|
|
|
|
|
|
|
|
81,000 |
|
|
81,000 |
|
|
|
75,000 |
75,000 |
565,000 |
565,000 |
370,000 |
370,000 |
91,000 |
91,000 |
226,000 |
226,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2B
The trial balance of Metro Company Ltd as on 31 Dec 2020 is given below:
Particulars |
Debit $/Rs |
|
Credit $/Rs |
Opening stock |
40,000 |
Share capital |
150,000 |
Purchase |
180,000 |
Sales |
350,000 |
Wages and salaries |
70,000 |
General reserve |
50,000 |
Interim dividend |
5,000 |
Account payable |
20,000 |
Rent |
19,000 |
Commission |
30,000 |
Cash and bank |
36,000 |
|
|
Account receivable |
150,000 |
|
|
Fixed assets |
100,000 |
|
|
|
600,000 |
|
600,000 |
Additional information:
a. Prepaid rent was Rs 1,000
b. Create general reserve by Rs 8,000
c. Commission includes Rs 5,000 received in advance
d. Dividend proposed @ 10% share capital including interim dividend
Required: Journal entries for adjustments and work sheet
[Answer: Adjustment = Rs 24,000; Adjusted TB = Rs 618,000;
Net profit = Rs 67,000; Surplus = Rs 44,000; Balance sheet = Rs 287,000]
*Net dividend [Rs 150,000 @ 10%) − 5,000 interim dividend] = Rs 10,000
SOLUTION:
Journal Entries
Date |
Particulars |
|
LF |
Amount |
Amount |
a |
Prepaid rent account |
Dr |
|
1,000 |
|
|
To Rent account |
|
|
|
1,000 |
|
(Being: rent paid in advance) |
|
|
|
|
b |
P&L appropriation account |
Dr |
|
8,000 |
|
|
To General reserve account |
|
|
|
8,000 |
|
(Being: new general reserve created) |
|
|
|
|
c |
Commission account |
Dr |
|
5,000 |
|
|
To Advance commission account |
|
|
|
5,000 |
|
(Being: commission received in advance) |
|
|
|
|
d |
P&L appropriation account |
Dr |
|
10,000 |
|
|
To Proposed dividend account |
|
|
|
10,000 |
|
[Being: dividend proposed (Rs 150,000 @ 10%) − 5,000 interim] |
|
|
|
|
Twelve Columns Work Sheet
Particulars |
Part 1 |
Part 2 |
Part 3 |
Part 4 |
Part 5 |
Part 6 |
||||||
|
Trial balance |
Adjustments |
Adjusted TB |
Income statement |
P&L Appn |
Balance sheet |
||||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
A |
L |
Opening stock |
40,000 |
|
|
|
40,000 |
|
40,000 |
|
|
|
|
|
Purchase |
180,000 |
|
|
|
180,000 |
|
180,000 |
|
|
|
|
|
Wages and salary |
70,000 |
|
|
|
70,000 |
|
70,000 |
|
|
|
|
|
Interim dividend |
5,000 |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
|
Rent |
19,000 |
|
|
1,000a |
18,000 |
|
18,000 |
|
|
|
|
|
Cash |
36,000 |
|
|
|
36,000 |
|
|
|
|
|
36,000 |
|
Account receivable |
150,000 |
|
|
|
150,000 |
|
|
|
|
|
150,000 |
|
Fixed assets |
100,000 |
|
|
|
100,000 |
|
|
|
|
|
100,000 |
|
Share capital |
|
150,000 |
|
|
|
150,000 |
|
|
|
|
|
150,000 |
Sales |
|
350,000 |
|
|
|
350,000 |
|
350,000 |
|
|
|
|
General reserve |
|
50,000 |
|
8,000b |
|
58,000 |
|
|
|
|
|
58,000 |
Account payable |
|
20,000 |
|
|
|
20,000 |
|
|
|
|
|
20,000 |
Commission received |
|
30,000 |
5,000c |
|
|
25,000 |
|
25,000 |
|
|
|
|
|
600,000 |
600,000 |
|
|
|
|
|
|
|
|
|
|
Prepaid rent |
|
|
1,000a |
|
1,000 |
|
|
|
|
|
1,000 |
|
General reserve |
|
|
8,000b |
|
8,000 |
|
|
|
8,000 |
|
|
|
Advance commission |
|
|
|
5,000c |
|
5,000 |
|
|
|
|
|
5,000 |
Proposed dividend |
|
|
10,000d |
10,000d |
10,000 |
10,000 |
|
|
10,000 |
|
|
10,000 |
Net profit (b/f) |
|
|
|
|
|
|
67,000* |
|
|
67,000* |
|
|
Surplus (b/f) |
|
|
|
|
|
|
|
|
44,000 |
|
|
44,000 |
|
|
|
24,000 |
24,000 |
618,000 |
618,000 |
375,000 |
375,000 |
67,000 |
67,000 |
287,000 |
287,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2C
The trial balance of Apex Company Ltd as on 31 December 2020 is given below:
Particulars |
Debit Rs |
Credit Rs |
|
Sale |
– |
6,25,000 |
|
wages |
20,000 |
|
|
Opening stock |
25,000 |
|
|
Purchase |
4,27,000 |
|
|
Salaries |
65,000 |
|
|
Equity share capital (2,500 @ Rs100) |
|
2,50,000 |
|
Debenture |
|
2,00,000 |
|
Sundry debtors |
55,000 |
|
|
Fixed assets |
2,50,000 |
|
|
Pattern and design |
1,50,000 |
|
|
General expenses |
45,000 |
|
|
Prepaid insurance |
4,000 |
|
|
Creditors |
|
65,000 |
|
Advance commission received |
|
7,000 |
|
Cash at bank |
1,25,000 |
– |
|
P&L appropriation account |
– |
24,000 |
|
Interim dividend |
5,000 |
– |
|
|
11,71,000 |
11,71,000 |
|
Additional information:
a. Depreciate fixed assets by 10%.
b. Provision for bad debts 5%.
c. Prepaid insurance expired Rs 2,000.
d. The 50% of the advance commission received is earned.
e. Transfer to general reserve Rs 15,000.
f. Proposed dividend 5% on paid-up capital.
g. Closing stock Rs 30,000.
Required: Journal entries for adjustments and twelve column worksheet
[Answer: Adjustment = Rs 90,750; Adjusted TB = Rs 12,28,500;
Net profit = Rs 46,750; Surplus = Rs 38,250; Balance sheet = Rs 584,250]
SOLUTION:
Journal Entries
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
a. |
Depreciation account |
Dr |
|
25,000 |
|
|
To Fixed assets account |
|
|
|
25,000 |
|
(Being: depreciation charged in fixed assets.) |
|
|
|
|
b. |
Bad debts account |
Dr |
|
2,750 |
|
|
To Sundry debtors account |
|
|
|
2,750 |
|
(Being: bad debts provided on sundry debtors) |
|
|
|
|
c. |
Insurance account |
Dr |
|
2,000 |
|
|
To Prepaid insurance account |
|
|
|
2,000 |
|
(Being: prepaid insurance expired.) |
|
|
|
|
d. |
Advance commission account |
Dr |
|
3,500 |
|
|
To Commission earned account |
|
|
|
3,500 |
|
(Being: 50% advance commission received as earned) |
|
|
|
|
e. |
P&L Appropriation account |
Dr |
|
15,000 |
|
|
To General reserve account |
|
|
|
15,000 |
|
(Being: amount transferred to general reserve out of profit) |
|
|
|
|
f. |
P&L Appropriation account |
Dr |
|
12,500 |
|
|
To Proposed dividend account |
|
|
|
12,500 |
|
(Being: proposed dividend out of profit) |
|
|
|
|
g. |
Closing stock account |
Dr |
|
30,000 |
|
|
To Trading account |
|
|
|
30,000 |
|
(Being: closing stock adjusted to trading account) |
|
|
|
|
|
|
|
|
|
|
Twelve Columns Work Sheet
Particulars |
Part 1 |
Part 2 |
Part 3 |
Part 4 |
Part 5 |
Part 6 |
||||||
|
Trial balance |
Adjustments |
Adjusted TB |
Income statement |
P&L Appn A/c |
Balance sheet |
||||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
A |
L |
Sale |
|
6,25,000 |
|
|
|
6,25,000 |
|
6,25,000 |
|
|
|
|
wages |
20,000 |
|
|
|
20,000 |
|
20,000 |
|
|
|
|
|
Opening stock |
25,000 |
|
|
|
25,000 |
|
25,000 |
|
|
|
|
|
Purchase |
427,000 |
|
|
|
427,000 |
|
427,000 |
|
|
|
|
|
Salaries |
65,000 |
|
|
|
65,000 |
|
65,000 |
|
|
|
|
|
Share capital |
|
250,000 |
|
|
|
250,000 |
|
|
|
|
|
250,000 |
Debenture |
|
200,000 |
|
|
|
200,000 |
|
|
|
|
|
200,000 |
Sundry debtors |
55,000 |
|
|
2,750b |
52,250 |
|
|
|
|
|
52,250 |
|
Fixed assets |
250,000 |
|
|
25,000a |
225,000 |
|
|
|
|
|
225,000 |
|
Pattern and design |
150,000 |
|
|
|
150,000 |
|
|
|
|
|
150,000 |
|
General expenses |
45,000 |
|
|
|
45,000 |
|
45,000 |
|
|
|
|
|
Prepaid insurance |
4,000 |
|
|
2,000c |
2,000 |
|
|
|
|
|
2,000 |
|
Creditors |
|
65,000 |
|
|
|
65,000 |
|
|
|
|
|
65,000 |
Advance comm. received |
|
7,000 |
3,500d |
|
|
3,500 |
|
|
|
|
|
3,500 |
Cash at bank |
125,000 |
|
|
|
125,000 |
|
|
|
|
|
125,000 |
|
P&L appn A/c |
|
24,000 |
|
|
|
24,000 |
|
|
|
24,000 |
|
|
Interim dividend |
5,000 |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
|
|
11,71,000 |
11,71,000 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
25,000a |
|
25,000 |
|
25,000 |
|
|
|
|
|
Bad debts |
|
|
2,750b |
|
2,750 |
|
2,750 |
|
|
|
|
|
Prepaid Ins. expired |
|
|
2,000c |
|
2,000 |
|
2,000 |
|
|
|
|
|
Commission earned |
|
|
|
3,500d |
|
3,500 |
|
3,500 |
|
|
|
|
General reserve |
|
|
15,000e |
15,000e |
15,000 |
15,000 |
|
|
15,000 |
|
|
15,000 |
Proposed dividend |
|
|
12,500f |
12,500f |
12,500 |
12,500 |
|
|
12,500 |
|
|
12,500 |
Closing stock |
|
|
30,000g |
30,000g |
30,000 |
30,000 |
|
30,000 |
|
|
30,000 |
|
Net profit c/d |
|
|
|
|
|
|
46,750 |
|
|
46,750 |
|
|
Surplus c/d |
|
|
|
|
|
|
|
|
38,250 |
|
|
38,250 |
Total |
|
|
90,750 |
90,750 |
12,28,500 |
12,28,500 |
6,58,500 |
6,58,500 |
70,750 |
70,750 |
5,84,250 |
5,84,250 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2D
The following unadjusted trial balance of AH Company Ltd:
Account Heads |
Dr Amount |
Particulars |
Cr Amount |
Cash |
25,000 |
Accumulated depn on building |
2,000 |
Accounts receivable |
7,000 |
Accumulated depn on plant |
1,000 |
Supplies |
2,000 |
Notes payable |
30,000 |
Prepaid insurance |
3,000 |
Accounts payable |
4,000 |
Land |
51,500 |
Unearned rent |
6,000 |
Building |
80,000 |
Share capital |
60,000 |
Plant |
40,000 |
Reserves |
20,000 |
Vehicles |
15,000 |
Service revenue |
160,000 |
Advertising |
4,000 |
P&L appropriation account |
25,000 |
Wages |
50,000 |
Provision for tax |
15,000 |
Supplies expenses |
6,000 |
|
|
Depreciation on building |
1,500 |
|
|
Depreciation on plant |
2,000 |
|
|
Utility expenses |
18,000 |
|
|
General expenses |
15,000 |
|
|
Interest expenses |
3,000 |
|
|
|
323,000 |
|
323,000 |
Additional information:
a. Service revenue earned but not yet billed Rs 1,000.
b. Supplies consumed during the year Rs 500.
c. Half of the un-earned rent is earned during the year.
d. One-third of un-expired Insurance has expired during the period.
e. Unpaid wages during the period is Rs 2000.
f. Transfer to reserve fund Rs 10,000.
g. Proposed dividend Rs 12,000.
Required: Work sheet
[Answer: Adjustment = Rs 29,500; Adjusted TB = Rs 308,000;
Net profit = Rs 61,000; Surplus = Rs 79,000; Balance sheet = Rs 223,000]
SOLUTION:
Twelve Columns Work Sheet
Particulars |
Part 1 |
Part 2 |
Part 3 |
Part 4 |
Part 5 |
Part 6 |
||||||
|
Trial balance |
Adjustments |
Adjusted TB |
Income statement |
P/L Appropriation |
Balance sheet |
||||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
A |
L |
Cash |
5,000 |
|
|
|
5,000 |
|
|
|
|
|
5,000 |
|
Accounts Receivable |
7,000 |
|
|
|
7,000 |
|
|
|
|
|
7,000 |
|
Supplies |
2,000 |
|
|
500 |
1,500 |
|
|
|
|
|
1,500 |
|
Prepaid Insurance |
3,000 |
|
|
1,000d |
2,000 |
|
|
|
|
|
2,000 |
|
Land |
51,500 |
|
|
|
51,500 |
|
|
|
|
|
51,500 |
|
Building |
80,000 |
|
|
|
40,000 |
|
|
|
|
|
80,000 |
|
Acc. Depreciation |
|
2,000 |
|
|
|
2,000 |
|
|
|
|
|
2,000 |
Plant |
60,000 |
|
|
|
60,000 |
|
|
|
|
|
60,000 |
|
Acc. Depreciation |
|
1,000 |
|
|
|
1,000 |
|
|
|
|
|
1,000 |
Vehicles |
15,000 |
|
|
|
15,000 |
|
|
|
|
|
15,000 |
|
Advertising |
4,000 |
|
|
|
4,000 |
|
4,000 |
|
|
|
|
|
Wages |
50,000 |
|
2,000e |
|
52,000 |
|
52,000 |
|
|
|
|
|
Supplies Expenses |
6,000 |
|
|
|
6,000 |
|
6,000 |
|
|
|
|
|
Depreciation Building |
1,500 |
|
|
|
1,500 |
|
1,500 |
|
|
|
|
|
Depreciation (Plant) |
2,000 |
|
|
|
2,000 |
|
2,000 |
|
|
|
|
|
Utility Expenses |
18,000 |
|
|
|
18,000 |
|
18,000 |
|
|
|
|
|
General Expenses |
15,000 |
|
|
|
15,000 |
|
15,000 |
|
|
|
|
|
Interest Expenses |
3,000 |
|
|
|
3,000 |
|
3,000 |
|
|
|
|
|
Notes Payable |
|
30,000 |
|
|
|
30,000 |
|
|
|
|
|
30,000 |
Accounts Payable |
|
4,000 |
|
|
|
4,000 |
|
|
|
|
|
4,000 |
Unearned Rent |
|
6,000 |
3,000c |
|
|
3,000 |
|
|
|
|
|
3,000 |
Share capital |
|
60,000 |
|
|
|
60,000 |
|
|
|
|
|
60,000 |
Reserves |
|
20,000 |
|
10,000 |
|
30,000 |
|
|
|
|
|
30,000 |
Service Revenue |
|
160,000 |
|
1,000 |
|
161,000 |
|
161,000 |
|
|
|
|
Provision for tax |
|
15,000 |
|
|
|
|
|
|
|
15,000 |
|
|
P&L Appn account |
|
25,000 |
|
|
|
|
|
|
|
25,000 |
|
|
|
283,000 |
283,000 |
|
|
|
|
|
|
|
|
|
|
Service revenue due |
|
|
1,000a |
|
1,000a |
|
|
|
|
|
1,000 |
|
Supplies consumed |
|
|
500b |
|
500b |
|
500 |
|
|
|
|
|
Rent earned |
|
|
|
3,000c |
|
3,000 |
|
3,000 |
|
|
|
|
Insurance expired |
|
|
1,000d |
|
1,000 |
|
1,000 |
|
|
|
|
|
Unpaid wage |
|
|
|
2,000e |
|
2,000 |
|
|
|
|
|
2,000 |
General reserve |
|
|
10,000f |
|
10,000f |
|
|
|
10,000 |
|
|
|
Proposed dividend |
|
|
12,000g |
12,000g |
12,000 |
12,000 |
|
|
12,000 |
|
|
12,000 |
Net profit c/d |
|
|
|
|
|
|
61,000 |
|
|
61,000 |
|
|
Surplus c/d |
|
|
|
|
|
|
|
|
79,000 |
|
|
79,000 |
Total |
|
|
29,500 |
29,500 |
308,000 |
308,000 |
164,000 |
164,000 |
101000 |
101,000 |
223,000 |
223,000 |
###########
Click on link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
###########
PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2A
The trial balance of AS Company Ltd as on 31st December is given below:
Particulars |
Debit Rs |
Particulars |
Credit Rs |
Opening stock |
40,000 |
Share capital |
1,00,000 |
Purchase |
2,00,000 |
Sales |
4,00,000 |
Wages and salaries |
50,000 |
P&L account last year |
50,000 |
Calls in arrear |
5,000 |
Account payable |
30,000 |
Rent |
19,000 |
Advance commission |
20,000 |
Cash |
1,36,000 |
|
|
Account receivable |
50,000 |
|
|
Machinery |
1,00,000 |
|
|
|
6,00,000 |
|
6,00,000 |
Additional information:
1. Advance commission earned Rs 15,000 for the year.
2. Proposed dividend @ 10%.
3. Bad debts are to be written off Rs 10,000.
4. Provision for bad debts is to be maintained @10%.
Required: Journal entry and work sheet
[Answer: Adjustment = Rs 38,500; Adjusted TB = Rs 609,500;
Net profit = Rs 92,000; Surplus = Rs 132,500; Balance sheet = Rs 277,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2B
The trial balance of BH Company Ltd as on 31st December is given below:
Particulars |
Debit Rs |
Particulars |
Credit Rs |
Opening stock |
60,000 |
Share capital |
1,20,000 |
Purchase |
2,00,000 |
Sales |