Unadjusted TB Adjustment Adjusted TB Income Statement

Particulars Debit Credit Debit Credit Debit Credit Debit Credit

Opening stock 70,000 - - - 70,000 - 70,000 -
Purchase 300,000 - - - 300,000 - 300,000 -
Wages 120,000 - 10,000 - 130,000 - 130,000 -
Insurance 40,000 - - 5,000 35,000 - 35,000 -
Machinery 500,000 - - 50,000 450,000 - - -
Debtors 130,000 - - - 130,000 - - -
Cash and bank 245,000 - - - 245,000 - - -
Salary 145,000 - - - 145,000 - 145,000 -
Share capital - 600,000 - - - 600,000 - -
Sales revenue - 845,000 - - - 845,000 - 845,000
Creditors 80,000 - - - 80,000 - -
Profit & loss a/c - 25,000 - - - 25,000 - -
Adjustment - - - - - - - -
Outstanding Wages - - - 10,000 - 10,000 - -
Prepaid Insurance - - 5,000 - 5,000 - - -
Depreciation - - 50,000 - 50,000 - 50,000 -
Proposed Dividend - - 48,000 48,000 48,000 48,000 - -
Net Profit 115,000 -

Retianed Profit - -
1,550,000 1,550,000 113,000 113,000 1,608,000 1,608,000 845,000 845,000
 PL App Balance Sheet
Debit Credt Debit Credit
- - - -
- - - -
- - - -
- - - -
- - 450,000 -
- - 130,000 -
- - 245,000 -
- - - -
- - - 600,000
- - - -
- - - 80,000
- 25,000 - -
- - - -
- - - 10,000
- - 5,000 -
- - - -
48,000 - - 48,000
- 115,000 - -

92,000 - - 92,000
140,000 140,000 830,000 830,000
Particular Amount (Dr) Particulars
Opening stock 10,000 Share capital
Purchase 250,000 Sales
Carriage 5,000 Sundry creditors
Wages 80,000 Profit & loss a/c
Salary 123000 Commission
Stationery 14,000 Debenture
Furniture 60,000
Equipments 140000
Investment 100000
Insurance 23,000
Legal expenses 18,000
Sundry debtors 53,000
Cash and bank 24,000
9,00,000

a. Closing stock valued of Rs. 85,000,

b. Wages outstanding Rs. 5,000,
c. Prepaid insurance of Rs. 3,000,
d. Depreciation on equipment 10% and on furniture 15%,
e. Bad debt written off Rs. 3000 and make a provision for
bad debt 10%.
f. Dividend proposed on share capital is 12%.
Amount (Cr) Trading and PL Account
250000 Dr
500000 Particulars Details Amount Particulars Details
37,000 To, Opening Stock 10,000 By Sales
35,000 To, Purchase 250,000 By Closing Stock
8,000 To, Carriage 5,000
70,000 To, Wages 80,000
Add: Outstanding Wages 5000 85,000
To, Gross Profit 235,000
585,000
To, Salary 123000 By Gross Profit
To, Stationery 14,000 By Commission
To, Insurance 23,000
Less: Prepaid Insurance -3000 20,000
9,00,000 To, Legal Expenses 18,000
To, Bad Debt 3000
To, Provision for Baddbet 5000
To, Depreciation A/c
-On Furniture 9000
-on Equipment 14000 23000

To, Net profit 37,000

243000

Profit and Loss Appropriation A/c

Dr
Particulars Details Amount Particulars Details
To, Proposed Dividend 30000 By balance b/d
To, Retained Profit 42,000 By Net profit
72000

Balance Sheet
Capital & Liabilities Details Amount Assets Details
Shareholder's Equity Fixed Assets
Share Capital 250,000 Equipment 140,000
Retained Profit 42,000 Less: Depreciation (14,000)
Furniture 60,000
Long Term Liabilities Less: Depreciation (9,000)
Debenture 70,000
Investment
Current Liabilities
Sundry Creditors 37,000 Current Assets
Outstanding Wages 5,000 Cash
Proposed Dividend 30,000 Sundry Debtors 53,000
Less; Bad Debt (3,000)
Less: Provision for baddebt (5,000)
Closing Stock
Prepaid Insurance
434,000
 Unadjusted TB
Cr Particulars Debit Credit
Amount Purchase 351,800 -
500000 Advertisement expenditure 5,850 -
85000 Salary 88,500 -
Carriage on sales 1,500 -
Interest on loan 5,600 -
Distribution expenditure 3,550 -
Administrative expenses 6,500 -
585,000 Share Capital - 400,000
235,000 Other income - 158,300
8,000 General reserve - 3,400
Bank loan - 100,000
Machinery& equipment 240,000 -
Drawing 130,000 -
Investment on Govt. bond 275,000 -
Cash and bank balance 156,900 -
Account receivable 125,800 -
Account payable - 26,600
Wages payable - 17,700
Rent and tax 10,000 -
243000 Advance insurance 60,000 -
Sales - 755,000
Adjustment
Cr Closign Stock - -
Amount Depreciation on Machinery - -
35,000 Insurance Expenses - -
37,000 Prepaid Advertisement - -
72000 Outstanding Salary - -
1,461,000 1,461,000

Amount

126,000

51,000

100,000

24,000

45,000
85,000
3,000
434,000
 Adjustment Adjusted TB
Debit Credit Debit Credit
- - 351,800 -
- - 5,850 -
20,000 - 108,500 -
- - 1,500 -
- - 5,600 -
- - 3,550 -
- 2,000 4,500 -
- - - 400,000
- - - 158,300
- - - 3,400
- - - 100,000
- 20,000 220,000 -
- - 130,000 -
- - 275,000 -
- - 156,900 -
- - 125,800 -
- - - 26,600
- - - 17,700

- - 10,000 -
- 35,000 25,000 -
- - - 755,000

240,000 240,000 240,000 240,000

20,000 - 20,000 -
35,000 - 35,000 -
2,000 - 2,000 -
- 20,000 - 20,000
317,000 317,000 1,721,000 1,721,000
Store Ledger(FIFO)
Date Particulars Receipt
Qty
Magh 1 Opening Balance
Magh 5 Receipt from Vendor 600

Magh 12 Issued

Magh 18 Return from Factory 50

Magh 22 Receipt from Vendor 1,000

Magh 28 Return to Vendor

 Issue
@ Amt Qty

11 6,300

400
400
11 525

11 11,000

20
 Balance
@ Amt Qty
400
400
600
10 4,000 200
11 4,200
200
50
200
50
1,000
11 210 180
50
1,000
@ Amt
10 4,000
10 4,000
11 6,300
11 2,100

11 2,100
11 525
11 2,100
11 525
11 11,000
11 1,890
11 525
11 11,000
Store Ledger(LIFO)
Date Particulars Receipt
Qty
Bhadra 1 Opening Balance
Bhadra 6 Purchase 1,100

Bhadra 14 Issued

Bhadra 21 Returned to Vendor

Bhadra 24 Purchase 1,700

Bhadra 26 Issued

Bhadra 28 Stock Verification Shortage

 Issue
@ Amt Qty

12 13,200

1,100
300
100

13 22,100

400

10
 Balance
@ Amt Qty
900
900
1,100
12 13,200 600
11 3,300
11 1,100 500

500
1,700

13 5,200 500
1,300

13 130 500
1,290
@ Amt
11 9,900
11 9,900
12 13,200
11 6,600

11 5,500

11 5,500
13 22,100

11 5,500
13 16,900

11 5,500
13 16,770
Particulars
Opening stock
Purchase
Wages
Insurance
Machinery
Debtors
Cash and bank
Salary
Share capital
Sales revenue
Creditors
Profit & loss a/c
Adjustment
Wages outstanding
Prepaid Insurance
Depreciation Expenes
Proposed Dividend
Net Profit
Retained Profit
Unadjusted TB Adjustment
Debit (Rs) Credit (Rs) Debit
70,000
300,000
120,000 13,000
30,000
500,000
130,000
200,000
100,000
500,000
850,000
75,000
25,000

8,000
50,000
25,000

1,450,000 1,450,000 96,000

 Adjusted TB
Credit Debit Credit
70,000 -
300,000 -
133,000 -
8,000 22,000 -
50,000 450,000 -
130,000 -
200,000 -
100,000 -
- 500,000
- 850,000
- 75,000
- 25,000

13,000 - 13,000
8,000 -
50,000 -
25,000 25,000 25,000

96,000 1,488,000 1,488,000

Income Statement Retained Earnings
Debit Credit Debit
70,000
300,000
133,000
22,000

100,000

850,000

50,000
25,000
175,000
175,000
850,000 850,000 200,000
 Balance Sheet
Credit Debit Credit

450,000
130,000
200,000

500,000

75,000
25,000

13,000
8,000

25,000
175,000
175,000
200,000 788,000 788,000
Particular Amount (Dr) Particulars
Beginning Inventory 20,000 Share capital
Purchase Expenses 240,000 Sales Revenue
Carriage 15,000 Sundry creditors
Wages 70,000 Retained Earnings
Salary 1,13,000 Commission
Stationery 24,000 10% debenture
Furniture 80,000
Equipment 1,20,000
Investment 1,00,000
Insurance 28,000
Legal expenses 13,000
Sundry debtors 53,000
Cash and bank 24,000
9,00,000
Amount (Cr) Trading and PL A/c
3,50,000 Particulars Details Amount Particulars
4,00,000 To, Opening Stock 20,000 By Sales
35,000 To, Purchase 240,000 By Closing Stock
37,000 To, Carriage 15,000
8,000 To, Wages 70,000
70,000 Add: OS wages 15,000 85,000
To, Gross Profit 225,000
585,000
To, Salary 113,000 By Gross Profit
To, Stationery 24,000 By Commission
To, Insurance 28,000
Less: Prepaid (5,000) 23,000
To, Legal Expenses 13,000
9,00,000 To, Depreciation
-Equipment 12,000
-Furniture 12,000 24,000
To, Bad Debt 3,000
To, New Provision for Baddebt 5,000
To, Interest on Debenture 7,000
To, Net Income 21,000
233,000

Profit and Loss Appropriation A/c

Particulars Details Amount Particulars
To, Proposed Dividend 35,000 By balance b/d
To, Retained Profit 23,000 By Net Income
58,000

Balance Sheet
Capital and Liabilities Details Amount Assets
Share Capital 350,000 Furniture
Retained Profit 23,000 Less: Depreci
Equipment
10% Debenture 70,000 Less: Depreci
Sundry Creditors 35,000
Outstanding Wages 15,000 Investment
Proposed Dividend 35,000
Interest on Debenture Payable 7,000 Sundry Debto
Less: New B
Less; New Pr
Cash and Bank
Closing Stock
Prepaid Insurance
535,000
 A/c
Details Amount
400,000
By Closing Stock 185,000

585,000
By Gross Profit 225,000
By Commission 8,000

233,000

priation A/c Liabilities 2069 2070 Assets

Details Amount Share capital 500,000 700,000 Fixed assets
By balance b/d 37,000 Debenture 200,000 100,000 Stock
By Net Income 21,000 Creditors 55,000 75,000 Debtors
58,000 Profit& loss 60,000 85,000 Cash& bank
815,000 960,000
et
Details Amount
80,000
(12,000) 68,000
120,000
(12,000) 108,000

100,000

53,000
(3,000)
(5,000) 45,000
Cash and Bank 24,000
Closing Stock 185,000
Prepaid Insurance 5,000
535,000
 2069 2070
500,000 650,000
120,000 140,000
150,000 160,000
45,000 10,000
815,000 960,000
 Cash Flow Statement (Direct Method)
Particulars Details Amount
Cash Flow from Operating Activities
Cash Collection from Customers
Sales Revenue 1,050,000
Less: Increase in Debtors (10,000) 1,040,000

Cash Payment to Suppliers

Cost of Goods Sold (560,000)
Less: Increase in Stock (20,000)
Add: Increase in Creditors 20,000 (560,000)

Cash Payment for Operating Expenses

Operating Expenses (200,000) (200,000)

Cash Payment for Interest Expenses

Interest Expenses (25,000) (25,000)

Cash Payment for Income Tax

Tax Expenses (40,000) (40,000)
Net Cash Flow from Operating Activities 215,000

Cash Flow from Investing Activities

Sales of Fixed Assets 45,000
Purchase of Fixed Asseets (260,000)
Net Cash Flow from Investing Activities (215,000)

Cash Flow from Financing Activities

Issue of Share Capital 200,000
Redemption of Debenture (115,000)
Dividend Paid (120,000)
Net Cash Flow from Financing Activities (35,000)
Net Change in cash or cash equivalent (35,000)
Add: Opening Balance of Cash 45,000
Closing Balance of Cash 10,000
 Unadjusted TB Adjustment Adjusted TB Income Statement
Particulars Debit (Rs) Credit Rs Debit Credit Debit Credit Debit Credit
Opening stock 70,000 70,000 70,000
Purchase 300,000 300,000 300,000
Wages 120,000 13,000 133,000 133,000
Insurance 30,000 8,000 22,000 22,000
Machinery 500,000 50,000 450,000
Debtors 130,000 130,000
Cash and bank 200,000 200,000
Salary 100,000 100,000 100,000
Share capital 500,000 500,000
Sales revenue 850,000 850,000 850,000
Creditors 75,000 75,000
Profit & loss a/c 25,000 25,000
Adjustment
Outstanding Wages 13,000 - 13,000
Prepaid Insurance 8,000 8,000 -
Depreciation on Machine 50,000 50,000 - 50,000
Proposed Dividend 25,000 25,000 25,000 25,000
Net Profit 175,000
Retained Profit
1,450,000 1,450,000 96,000 96,000 1,488,000 1,488,000 850,000 850,000
Retained Earnings Balance Sheet Trading and PL Ac
Debit Credit Debit Credit Particulars Details Amount (Dr)
Opening stock 20,000
Purchase 240,000
Carriage 15,000
Wages 70,000
450,000 Add:Outstanding Wages 15,000 85,000
130,000 To, Gross Profit 225,000
200,000 585,000
Salary 113,000
500,000 Stationery 24,000
Insurance 28,000
75,000 Less: Prepaid Insurance (5,000) 23,000
25,000 Legal expenses 13,000
To, Depreciation on Equipment 12,000
13,000 To, Depreciation on Furniture 12,000 24,000
8,000 To, Bad Debt 3,000
To, Provision for bad debt 5,000
25,000 25,000 To, Interest on Debenture 7,000
175,000 To, Net Profit 31,000
175,000 175,000 243,000
200,000 200,000 788,000 788,000 Profit and Loss Appropriation Ac
Particulars Details Amount
To, Proposed Dividend 35,000
To, Retained Profit 33,000
68,000
Balance Sheet
Capital and Liabilities Details Amount
Share Capital 350,000
Retained Profit 33,000

Long Term Debt

10% Debenture 70,000

Current Liabilities
Creditors 35,000
Proposed dividend 35,000
Outstanding Interest on Debenture 7,000
Outstanding Wages 15,000 92,000

545,000
 Trading and PL Ac
Particulars Amount (Cr)
By Sales 400,000
By Closing Stock 185,000

585,000
By Gross Profit 225,000
By Commission 8,000
By Interest on Investment 10,000

243,000
fit and Loss Appropriation Ac
Particulars Details Amount
By Balance b/d 37,000
By Net profit 31,000
68,000
Balance Sheet
Assets Details Amount
Fixed Assets
Furniture 80,000
Less: Depreciation (12,000) 68,000
Equipment 120,000
Less: Depreciation (12,000) 108,000

Investment
10% Investment 100,000

Current Assets
Sundry Debtors 53,000
Less: Bad Debt (3,000)
Less: New Provision for baddebt (5,000) 45,000
Cash and Bank 24,000
Closing Stock 185,000
Prepaid Insurance 5,000
Accrued Interest on Investment 10,000

545,000
-
 Cash Flow Statement (Direct Method)
Particulars Details Amount Date Particulars
A) Cash Flow from Operating Activities
Cash Collection from Customers Magh 01 Beginning Balance
Sales Revenue 1,050,000 Magh 08 Purchase
Less: Increase in Debtors (10,000) 1,040,000
Cash payment to Suppliers Magh 14 Issued
Cost of Goods Sold (560,000)
Less: Increase in Inventory (20,000) Magh 16 Return From
Add: Increase in Creditors 20,000 (560,000)
Cash payment for Operating Expenses
Operating Expenses (200,000) (200,000) Magh 21 Purchase
Cash payment for Interest
Interest Expenses (25,000) (25,000)
Cash payment for Tax
Tax Expenses (40,000) (40,000) Magh 24 Issued
Net Cash Flow from Operating Activities 215,000
B) Cash Flow from Investing Activities
Purchase of Fixed Assets (260,000)
Sales of Fixed Assets 45,000 Magh 26 verification shortage
Net Cash Flow from Investing Activities (215,000)
C) Cash Flow from Financing Activities
Issue of Share Capital 200,000
Repayment of Debenture (115,000)
Dividend Paid (120,000)
Net Cash Flow from Financing Activities (35,000)
Net Change in Cash or Cash Equivalent (35,000)
Add: Opening Balance of Cash 45,000
Ending Balance of Cash 10,000
 Store Ledger (LIFO)
Receipt Issue Balance
Qty @ Amount Qty @ Amount Qty @ Amount
Beginning Balance 600 8 4800
800 9 7200 600 8 4800
800 9 7200
700 9 6300 600 8 4800
100 9 900
50 9 450 600 8 4800
100 9 900
50 9 450
1200 10 12000 600 8 4800
100 9 900
50 9 450
1200 10 12000
800 10 8000 600 8 4800
100 9 900
50 9 450
400 10 4000
verification shortage 20 10 200 600 8 4800
100 9 900
50 9 450
380 10 3800
 Cost Sheet Tender Sheet
Particulars Details Amount Particulars Details Amount
Direct Materi 350,000 Direct Materi 175,000
Direct wages 300,000 Direct wages 150,000
Prime Cost 650,000 Prime Cost 325,000
Factory Overhead 150,000 Factory Overhead 75,000
Factory Cost 800,000 Factory Cost 400,000
Office and Administrative 80,000 Office and Administrative 40,000
Cost of Sales 880,000 Cost of Sales 440,000
Profit 176,000 Profit 88,000
Sales Revenue 1,056,000 Sales Revenue 528,000