Adjusted Trial Balance Problems and Solutions
Arjun EP
Problems and Solutions
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 3
The trial balance of ABC Trading Company as on 31 December 2019 is given below:
|
Particulars |
Amount Dr |
Particulars |
Amount Cr |
|
|
Opening stock Purchase Wages Salaries Rent Cash Debtors Machinery |
40,000 2,00,000 20,000 30,000 24,000 36,000 50,000 1,00,000 |
Capital Sales Loan Creditors Sundry income
|
1,00,000 3,00,000 50,000 30,000 20,000 |
|
|
5,00,000 |
5,00,000 |
|
Additional information:
a. Wages outstanding Rs 5,000.
b. Depreciation on machinery by 10%.
c. Closing stock was valued Rs 50,000.
Required: Journal entry and adjusted trial balance
[Answer: Adjustment = 65,000; Adjusted TB = 555,000]
SOLUTION:
Journal Entries
|
Date |
Particulars |
|
LF |
Amount Dr |
Amount Dr |
|
a |
Wages account To Outstanding wages account (Being: wages payable) |
Dr
|
|
5,000 |
5,000 |
|
b |
Depreciation account To Machinery account (Being: depreciation charged on 100,000@ 10%) |
Dr
|
|
10,000 |
10,000 |
|
c |
Closing stock account To Trading account (Being: closing stock recorded) |
Dr
|
|
50,000 |
50,000 |
Adjusted Trial Balance
|
Particulars |
Part 1 |
Part 2 |
Part 3 |
|
|||
|
Trial balance |
Adjustments |
Adjusted trial balance |
|
||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
|
|
|
Opening stock |
40,000 |
|
|
|
40,000 |
|
|
|
Purchase |
2,00,000 |
|
|
|
2,00,000 |
|
|
|
Wages |
20,000 |
|
5,000a |
|
25,000 |
|
|
|
Salaries |
30,000 |
|
|
|
30,000 |
|
|
|
Rent |
24,000 |
|
|
|
24,000 |
|
|
|
Cash |
36,000 |
|
|
|
36,000 |
|
|
|
Debtors |
50,000 |
|
|
|
50,000 |
|
|
|
Machinery |
1,00,000 |
|
|
10,000b |
90,000 |
|
|
|
Share capital |
|
1,00,000 |
|
|
|
1,00,000 |
|
|
Sales |
|
3,00,000 |
|
|
|
3,00,000 |
|
|
Loan |
|
50,000 |
|
|
|
50,000 |
|
|
Creditors |
|
30,000 |
|
|
|
30,000 |
|
|
Sundry income |
|
20,000 |
|
|
|
20,000 |
|
|
|
500,000 |
500,000 |
|
|
|
|
|
|
O/s wages |
|
|
|
5,000a |
|
5,000 |
|
|
Depreciation |
|
|
10,000b |
|
10,000 |
|
|
|
Closing stock |
|
|
50,000d |
50,000d |
50,000 |
50,000 |
|
|
Total |
|
|
65,000 |
65,000 |
5,55,000 |
5,55,000 |
|
###########
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###########
PROBLEM: 4
The trial balance of MJ Company Ltd as on 31st December 2019 is given below:
|
Particulars |
Amount Dr |
Amount Dr |
|
|
Capital Sales Purchase Wages Carriage Salary Fixed assets Creditors Debtors Insurance |
− − 2,95,000 20,000 5,000 30,000 3,00,000 − 40,000 10,000 |
2,50,000 4,00,000 − − − − − 50,000 − − |
|
|
Total |
7,00,000 |
7,00,000 |
|
Additional information:
a. Appreciation on fixes assets by 10%
b. Wages outstanding Rs 5,000
c. Insurance prepaid Rs 2,000
d. Bad debts is maintained 10%
Required: Journal entries for adjustments and adjusted trial balance
[Answer: Adjustment = 41,000; Adjusted TB = 7,35,000;
SOLUTION:
Journal Entries
|
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
|
Fixed assets account To Appreciation account (Being: appreciation on fixed assets 300,000 @ 10%) |
Dr
|
|
30,000 |
30,000 |
|
|
Wages account To Outstanding wages account (Being: wages due for the period) |
Dr
|
|
5,000 |
5,000 |
|
|
Prepaid insurance account To Insurance account (Being: insurance paid in advance) |
Dr
|
|
2,000 |
2,000 |
|
|
Bad debts account To Debtors account (Being: bad debts is charged on debtors 40,000@10%) |
Dr
|
|
4,000 |
4,000 |
Adjusted Trial Balance
|
Particulars |
Part 1 |
Part 2 |
Part 3 |
|
|||
|
Trial balance |
Adjustments |
Adjusted TB |
|
||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
|
|
|
Capital |
|
2,50,000 |
|
|
|
2,50,000 |
|
|
Sales |
|
4,00,000 |
|
|
|
4,00,000 |
|
|
Purchase |
2,95,000 |
|
|
|
2,95,000 |
|
|
|
Wages |
20,000 |
|
5,000B |
|
25,000 |
|
|
|
Carriage |
5,000 |
|
|
|
5,000 |
|
|
|
Salary |
30,000 |
|
|
|
30,000 |
|
|
|
Fixed assets |
3,00,000 |
|
30,000A |
|
3,30,000 |
|
|
|
Creditors |
|
50,000 |
|
|
|
50,000 |
|
|
Debtors |
40,000 |
|
|
4,000D |
36,000 |
|
|
|
Insurance |
10,000 |
|
|
2,000C |
8,000 |
|
|
|
|
7,00,000 |
7,00,000 |
|
|
|
|
|
|
Appreciation on FA |
|
|
|
30,000A |
|
30,000 |
|
|
O/s wages |
|
|
|
5,000B |
|
5,000 |
|
|
Prepaid insurance |
|
|
2,000C |
|
2,000 |
|
|
|
Bad debts |
|
|
4,000D |
|
4,000 |
|
|
|
Net profit (b/f) |
|
|
|
|
|
|
|
|
Total |
|
|
41,000 |
41,000 |
7,35,000 |
7,35,000 |
|
********
|
PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
Basic Problem: 3
The trial balance of AK Company as on 31st December 2019 is given below:
|
Particulars |
Amount Dr |
Amount Cr |
|
|
Capital Revenue Bank overdraft Purchase Land and building Wages Sundry debtors Plant and machinery Advertisement Insurance |
– – – 2,00,000 3,00,000 15,000 80,000 2,00,000 10,000 10,000 |
5,00,000 3,00,000 15,000 – – – – – – – |
|
|
Total |
8,15,000 |
8,15,000 |
|
Additional information:
a. Outstanding wages is Rs 20,000.
b. Depreciate plant and machinery by 10%.
c. Insurance prepaid was Rs 4,000.
Required: Adjustment entries and adjusted trial balance
[Answer: Adjustment = 44,000; Adjusted TB = 835,000]
Basic Problem: 4
The trial balance of MK Traders as on 31st December:
|
Particulars . |
Amount Dr |
Amount Cr |
|
Capital Sales Purchases Wages Carriage Salaries Fixed assets Creditors Debtors Insurance |
– – 2,95,000 20,000 5,000 30,000 3,00,000 – 90,000 10,000 |
2,50,000 4,50,000 – – – – – 50,000 – – |
|
Total |
7,50,000 |
7,50,000 |
Additional information:
a. Depreciate fixed assets by 10%
b. Wages outstanding Rs 25,000.
c. Insurance prepaid Rs 2,000.
d. Bad debts Rs 3,000.
Required: Adjustment entries and adjusted trial balance
[Answer: Adjustment = 60,000; Adjusted TB = 775,000,
***********
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