Pass adjusting entries for the following on 31st March, 2018.
(i) Charge interest on drawings at Rs. 50
(ii) Write off bad debts by Rs. 500
(iii) Depreciate furniture by Rs. 1,000

Sundry debtors as per trial balance Rs. 26,000
Bad debts as per trial balance Rs. 1,000
Adjustment: Additional bad debts amounted to Rs. 2,500
Give adjusting entry and show how these appear in the final accounts on 31^st March, 2016

What is meant by provision for doubtful debts? Why is it created?

Give the adjusting entries for interest on capital and interest on drawings.

The following are the extracts from the trial balance.

Particulars	Debit Rs.	Credit Rs.
Sundry Creditors		30,000
Discount received		1,000

You are required to show how these items will appear in the profit and loss account and balance sheet.