11th | Ts grewal 2021-2022 | Question 15 And 16 | ch: 11 Special Purpose Books II - Other Books

Page No 11.38:

Question 15:

(Adjustment Entries) From the following information available on 31st March, 2021, pass the necessary Adjustment Entries in the Journal for the year ending on that date:
(i) Interest accrued ` 2,500.
(ii) Wages for March, 2021 outstanding ` 10,000.
(iii) Insurance prepaid ` 1,500.
(iv) Commission due to manager 6% on net profit after charging such commission. The profit before charging such commission was ` 1,06,000. 
(v) Interest due on loan but not paid. Loan of ` 1,50,000 was taken at 9% p.a. 9 months before end of the year.

Answer:

Journal
S. No.	Particulars			L.F.	Debit  (`)	Credit  (`)
2021
March 31	Accrued Interest A/c	Dr.			2,500
	To Interest A/c					2,500
	(Interest accrued)
March 31	Wages A/c	Dr.			10,000
	To Wages Outstanding A/c					10,000
	(Wages for the month of March outstanding)
March 31	Prepaid Insurance A/c	Dr.			1,500
	To Insurance A/c					1,500
	(Insurance paid in advance)
March 31	Manager’s Commission A/c		Dr.		6,000
	To Manager’s Commission Payable A/c					6,000
	(Manager Commission Charged on Net Profit)
	Note: Manager’s Commission=1,06,000×6/106
March 31	Interest on Loan A/c		Dr.		10,125
	To Outstanding Interest A/c					10,125
	(Interest on Loan Outstanding for 9 months)
	Note: Interest on Loan=1,05,000×9×9/100×12)

 

Page No 11.38:

Question 16:

R. Chetan, Kolkata has the following balances in his books on 1st March, 2021:
Cash ` 15,400; Cash at Bank ` 82,500; Stock ` 1,92,500; Plant and Machinery ` 4,40,000.
Sundry Debtors: Rajesh ` 27,500; James ` 13,750.
Sundry Creditors: Rao ` 19,250, Samanta; ` 35,750; Capital ` 7,16,650.
The following are the transactions for the month of March 2021:

2021	Transactions	`
March 1	Cash Sales	2,000
March 2	Purchases machinery by cheque	5,000
March 4	Paid salaries by cheque	2,750
March 7	Paid wages	440
March 9	Rajesh settled his account by cheque less 5% discount
March 11	Sold goods on credit to James, Patna	10,000
March 13	Sent a credit note to James for goods returned	2,000
March 18	Paid to Rao by cheque in full settlement	18,000
March 20	Took loan from Bank of Baroda	50,000
March 22	Withdrawn from bank for personal purposes	2,500
March 25	Bought goods from Samanta, Delhi	5,000
March 27	Paid corporation tax by cheque	1,155
March 30	Cash sales and paid into bank	4,000
March 31	All cash in hand, with the exception of ` 825 retained for change, was paid into the bank

Record these transactions in his subsidiary books, post to the Ledger and prepare a Trial Balance as on 31st March, 2021.

Answer:

Cash Book
Date	Particulars	L.F.	Cash (`)	Bank (`)	Date	Particulars	L.F.	Cash (`)	Bank (`)
2021					2021
March 01	To Balance b/d		15,400	82,500	March 02	By Machinery			5,000
March 01	To Sales A/c		2,000		March 04	By Salaries			2,750
March 09	To Rajesh			26,125	March 07	By Wages A/c			440
March 20	To Bank Loan A/c			50,000	March 18	By Rao			18,000
March 30	To Sales A/c		4,000		March 22	By Drawings			2,500
March 31	To Cash A/c	C		20,575	March 27	By Corporation Tax A/c			1,155
					March 31	By Bank A/c	C	20,575
					March 31	By Balance c/d		825	1,49,355
			21,400	1,79,200				21,400	1,79,200

   

 

Purchases Book
Date	Particulars	Invoice No.	L.F.	Details (`)	Amount (`)
2021
Mar 25	Samanta , Delhi			5,000	5,000
Mar 31	Purchases A/c          …Dr.				5,000

 

Sales Book
Date	Particulars	Invoice No.	L.F.	Details (`)	Amount (`)
2021
Mar 11	James Patna			10,000	10,000
Mar 31	Sales A/c             …Cr.				10,000

 

Sales Return Book
Date	Particulars	Credit Note No.	L.F.	Details (`)	Amount (`)
2021
Mar 13	James Patna			2,000	2,000
Mar 31	Sales Return A/c   Dr.				2,000

 

Stock Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 01	To Balance b/d		1,92,500	March 31	By Balance c/d		1,92,500
			1,92,500				1,92,500
April 1	To Balance b/d		1,92,500

 

Plant and Machinery Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 01	To Balance b/d		4,40,000	March 31	By Balance c/d		4,40,000
			4,40,000				4,40,000
April 1	To Balance b/d		4,40,000

 

Rajesh
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 01	To Balance b/d		27,500	March 09	By Bank A/c		26,125
				March 09	By Discount Allowed A/c		1,375
			27,500				27,500
				April 1	By Balance b./d		27,500

 

James
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 01	To Balance b/d		13,750	March 13	By Sales Return A/c		2,000
March 11	To Sales A/c		10,000	March 31	By Balance c/d		21,750
			23,750				23,750
April 1	To Balance b/d		21,750

 

Rao
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 18	To Bank A/c		18,000	March 01	By Balance b/d		19,250
March 18	To Discount Received A/c		1,250
			19,250				19,250
April 1	To Balance b/d		19,250

 

Samanta
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Balance c/d		40,750	March 01	By Balance b/d		35,750
				March 25	By Purchases A/c		5,000
			40,750				40,750
				April 1	To Balance b/d		40,750

 

Salaries Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 04	To Bank A/c		2,750	March 31	By Balance c/d		2,750
			2,750				2,750
April 1	To Balance b/d		2,750

 

Wages Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 07	To Cash A/c		440	March 31	By Balance c/d		440
			440				440
April 1	To Balance b/d		440

 

Discount Allowed Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 09	To Rajesh		1,375	March 31	By Balance c/d		1,375
			1,375				1,375
April 1	To Balance b/d		1,375

 

Discount Received Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Balance c/d		1,250	March 18	By Rao		1,250
			1,250				1,250
				April 1	By  Balance b/d		1,250

 

Bank Loan Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Balance c/d		50,000	March 20	By Bank A/c		50,000
			50,000				50,000
				April 1	By Balance b/d		50,000

 

Drawings Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 22	To Bank A/c		2,500	March 31	By Balance c/d		2,500
			2,500				2,500
April 1	To Balance b/d		2,500

 

Corporation Tax Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 27	To Bank A/c		1,155	March 31	By Balance c/d		1,155
			1,155				1,155
April 1	To Balance b/d		1,155

 

 

Capital Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Balance c/d		7,16,650	March 01	By Balance b/d		7,16,650
			7,16,650				7,16,650
				April 1	By Balance b/d		7,16,650

 

Sales Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Balance c/d		16,000	March 01	By Cash A/c		2,000
				March 30	By Cash A/c		4,000
				March 31	By Sundries from Sales Book		10,000
			16,000				16,000
				April 1	By Balance b/d		16,000

    

Machinery Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 02	To Bank A/c		5,000	March 31	By Balance c/d		5,000
			5,000				5,000
April 1	To Balance b/d		5,000

 

Purchases Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Sundries from purchases Book		5,000	March 31	By Balance c/d		5,000
			5,000				5,000
April 1	To Balance b/d		5,000

 

Sales Return Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (`)	Date	Particulars	J.F.	Amount (`)
2021				2021
March 31	To Sundries from Sales Return Book		2,000	March 31	By Balance c/d		2,000
			2,000				2,000
April 1	To Balance b/d		2,000

 

Trial Balance as on March 31, 2021
S. No.	Particular	J.F.	Debit Amount (`)	Credit Amount (`)
1	Capital			7,16,650
2	Purchases		5,000
3	Sales			16,000
4	Sales Return		2,000
8	Machinery		5,000
12	Bank Loan			50,000
13	Drawings		2,500
14	Corporation Tax		1,155
15	Salaries		2,750
16	Wages		440
17	Discount Allowed		1,375
18	Discount Received			1,250
19	James		21,750
20	Samanta			40,750
21	Stock		1,92,500
22	Plant and Machinery		4,40,000
23	Cash in hand		825
24	Bank Balance		1,49,355
			8,24,650	8,24,650

 

 

Click below for More solutions

Question No. 1 and 2

Question No. 3 and 4

Question No. 5 and 6

Question No. 7 and 8

Question No. 9 and 10

Question No. 11 and 12

Question No. 13 and 14

Question No. 15 and 16

Question No. 17 and 18