Rahul's trial balance provide you the following information:
Debtors                                Rs 8,000
Bad debts                            Rs 2,000
Provision for doubtful debts Rs 4,000
It is desired to maintain a provision for bad debts of Rs 1,000
State the amount to be debited/credited in profit and loss account:

If the opening capital is Rs 50,000 as on April 01.2014 and additional capital introduced Rs 10,000 on January 01.2015. Interest charge on capital 10% p.a. The amount of interest on capital shown in profit and loss account as on March 31.2015 will be :

If the insurance premium paid Rs 1,000 pre-paid insurance Rs 300. The amount of insurance premium shown in profit and loss account will be :

How is closing stock recorded?

State the meaning of outstanding expenses.

State the meaning of prepaid expenses.

On which side of the Balance Sheet is Prepaid Expense shown?

How will you treat the adjustment of depreciation?

How will you treat adjusbnent of bad debts ?

How will you treat the adjustment of abnormal loss if it is fully insured?

How will you treat goods taken for personal use of the proprietor?

What is outstanding expenses ? What is its adjusting entries ?

Define accrued income. What is its adjusting entry ?

State the meaning of :
(i) Outstanding expenses,
(ii) Prepaid expenses,
(iii) Income received in advance,
(iv) Accrued income.

Why is it necessary to create a provision for doubtful debts at the time of preparation of final accounts?

What is meant by provision for discount on debtors?

Identify whether following receipts are capital or revenue. How will they be treated in final accounts :
(i) Sale proceeds of goods Rs 20,000.
(ii) Commencement of business with Rs 60,000.
(iii) Rent received from premises sublet Rs 4,000.
(iv) Profit on sale of land and building Rs 5,000.
(v) Amount received from sale of assets Rs 80,000.
(vi) Amount received from sale of scraps, i.e., newspapers, boxes, grass, bottles, etc Rs 300.

Show the following items in Profit & Loss Account and Balance Sheet.

Adjustments :
1. Further Bad Debts amounted of Rs 1,000.
2. Create a provision for doubtful debts on Sundry Debtors @ 5%.
3. Make a provision of discount on Sundry Debtors @ 2% .
You are also required to pass Journal Entries for the above transactions.

From the following Trial Balance and Adjustments, prepare Trading Account, Profit & Loss Account and Balance Sheet as on 31-12-2011 :

Adjustments:
(i) Closing Stock Rs 30,000 (Cost); Rs 32,000 (Market Price).
(ii) Wages Outstanding Rs 2,500.
(ill) Salaries Outstanding Rs 1,200.
(iv) Prepaid Insurance Rs 200.

Prepare a trading and profit and loss account of Mis Green Club Ltd. year ending March 31, 2014, from the following figures taken from trial balance :

Adjustments:
(i) Depreciation charged on machinery @ 5% p.a.
(ii) Further bad debts 1,500, discount on debtors @ 5% provision on debtors @ 6%.
(iii) Wages prepaid 1,000.
(iv) Interest on investment @ 5% p.a.
(v) Closing stock 10,000.