Comprehensive Problem and Solution of Adjusted Trial Balance
Arjun EP
Comprehensive Problem and solution is the advanced question and its solution to understand entire chapter of adjusted trial balance. It helps to understand entire topic.
Comprehensive Question and Solution
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 7
The trial balance of ABC Company Ltd as on 31st December is given below:
|
Particulars |
Amount Dr |
Amount Cr |
|
|
Share capital Revenue Bank Loan Creditors Cash in hand Debtors Fixed assets Administrative expenses Salaries Other expenses |
40,000 60,000 7,00,000 2,00,000 2,50,000 1,50,000 |
3,00,000 8,00,000 2,50,000 50,000 |
|
|
Total |
14,00,000 |
14,00,000 |
|
Additional information:
a. Provide depreciation @ 10% p.a. on fixed assets
b. Salaries payable Rs 10,000
Required: Journal entries for adjustment and work sheet
[Answer: Adjusted TB = 14,10,000; Net profit = 120,000; Balance sheet = 730,000]
SOLUTION:
Journal Entries
|
Date |
Particulars |
|
LF |
Amount |
Amount |
|
|
Depreciation account To Fixed assets account (Being: depreciation charged on fixed assets 700,000 @ 10%) |
Dr
|
|
70,000 |
70,000 |
|
|
Salary account To Outstanding salary account (Being: salary due for the period) |
Dr
|
|
10,000 |
10,000 |
Ten Columns Work Sheet
|
Particulars |
Part 1 |
Part 2 |
Part 3 |
Part 4 |
Part 5 |
|||||
|
Trial balance |
Adjustments |
Adjusted TB |
Income Statement |
Balance sheet |
||||||
|
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
A |
L. |
|
|
Capital |
|
3,00,000 |
|
|
|
3,00,000 |
|
|
|
3,00,000 |
|
Revenue |
|
8,00,000 |
|
|
|
8,00,000 |
|
8,00,000 |
|
|
|
Bank loan |
|
2,50,000 |
|
|
|
2,50,000 |
|
|
|
2,50,000 |
|
Creditors |
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
Cash in hand |
40,000 |
|
|
|
40,000 |
|
|
|
40,000 |
|
|
Debtors |
60,000 |
|
|
|
60,000 |
|
|
|
60,000 |
|
|
Fixed assets |
7,00,000 |
|
|
70,000A |
6,30,000 |
|
|
|
6,30,000 |
|
|
Administrative exp. |
2,00,000 |
|
|
|
2,00,000 |
|
2,00,000 |
|
|
|
|
Salaries |
2,50,000 |
|
10,000B |
|
2,60,000 |
|
2,60,000 |
|
|
|
|
Other expense |
1,50,000 |
|
|
|
1,50,000 |
|
1,50,000 |
|
|
|
|
14,00,000 |
14,00,000 |
|
|
|
|
|
|
|
|
|
|
Depn on fixed assets |
|
|
70,000A |
|
70,000 |
|
70,000 |
|
|
10,000 |
|
Salary payable |
|
|
|
10,000B |
|
10,000 |
|
|
|
|
|
Net profit (b/f) |
|
|
|
|
|
|
1,20,000 |
|
|
1,20,000 |
|
Total |
|
|
80,000 |
80,000 |
14,10,000 |
14,10,000 |
8,00,000 |
8,00,000 |
7,30,000 |
7,30,000 |
###########
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###########
PROBLEM: 8
The trial balance of MK Company Ltd as on 31st December is given below:
|
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: Ten column worksheet
[Answer: Adjustment = 40,000; Adjusted TB = 705,000,
Net profit = 34,000; Balance sheet = 359,000)
SOLUTION:
Journal Entries
|
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
a |
Depreciation account To Fixed assets account (Being: depreciation charged on assets 300,000 @ 10%) |
Dr
|
|
30,000 |
30,000 |
|
b |
Wages account To outstanding wages account (Being: wages payable) |
Dr
|
|
25,000 |
25,000 |
|
c |
Prepaid insurance account To Insurance account (Being: prepaid insurance adjusted from insurance paid) |
Dr
|
|
2,000 |
2,000 |
|
d |
Bad debts account To Debtors account (Being: bad debts written off from debtors) |
Dr
|
|
3,000 |
3,000 |
Ten Columns Work Sheet
|
Particulars |
Part 1 |
Part 2 |
Part 3 |
Part 4 |
Part 5 |
|||||
|
Trial balance |
Adjustments |
Adjusted trial balance |
Income statement |
Balance sheet |
||||||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Assets |
Liabilities |
|
|
Capital |
– |
250,000 |
|
|
– |
250,000 |
|
|
|
250,000 |
|
Sales |
– |
400,000 |
|
|
– |
400,000 |
|
450,000 |
|
|
|
Purchases |
295,000 |
– |
|
|
295,000 |
– |
295,000 |
|
|
|
|
Wages |
20,000 |
– |
25,000b |
|
45,000 |
– |
45,000 |
|
|
|
|
Carriage |
5,000 |
– |
|
|
5,000 |
– |
5,000 |
|
|
|
|
Salaries |
30,000 |
– |
|
|
30,000 |
– |
30,000 |
|
|
|
|
Fixed assets |
300,000 |
– |
|
30,000a |
270,000 |
– |
|
|
270,000 |
|
|
Creditors |
– |
50,000 |
|
|
– |
50,000 |
|
|
– |
50,000 |
|
Debtors |
90,000 |
– |
|
3,000d |
87,000 |
– |
|
|
87,000 |
|
|
Insurance |
10,000 |
– |
|
2,000c |
8,000 |
– |
8,000 |
|
|
|
|
|
750,000 |
750,000 |
|
|
|
|
|
|
|
|
|
Depn on FA |
|
|
30,000a |
|
30,000 |
|
30,000 |
|
|
|
|
O/s wages |
|
|
|
25,000b |
|
25,000 |
|
|
|
25,000 |
|
Insurance prepaid |
|
|
2,000c |
|
2,000 |
|
|
|
2,000 |
|
|
Bad debts |
|
|
3,000d |
|
3,000 |
|
3,000 |
|
|
|
|
Net profit |
|
|
|
|
|
|
34,000 |
|
|
34,000 |
|
Total |
|
|
40,000 |
40,000 |
705,000 |
705,000 |
450,000 |
450,000 |
359,000 |
359,000 |
***********
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