AccountancyNEB 2082
The trial balance of a company is given below : Particulars Dr. (Rs.) Cr. (Rs.) : : : Purchase 2,00,000 Wages 50,000 Salary 35,000 Prepaid rent 20,000 Machinery 3,50,000 Furniture 1,60,000 Debtors…
5The trial balance of a company is given below :
| Particulars | Dr. (Rs.) | Cr. (Rs.) |
|---|---|---|
| Purchase | 2,00,000 | |
| Wages | 50,000 | |
| Salary | 35,000 | |
| Prepaid rent | 20,000 | |
| Machinery | 3,50,000 | |
| Furniture | 1,60,000 | |
| Debtors | 40,000 | |
| Cash | 15,000 | |
| Sales | 4,50,000 | |
| Share capital | 3,50,000 | |
| Retained earnings | 70,000 | |
| Total | 8,70,000 | 8,70,000 |
Additional information:
- i) Prepaid rent expired Rs. 12,000
- ii) Depreciation on machinery @10%
Required: [5] Work sheet (You should prepare format of worksheet yourself.)
Answer
Worksheet for the Company
| Particulars | Trial Balance (Dr.) | Adjustments (Dr.) | Adjustments (Cr.) | Adjusted Trial Balance (Dr.) | Income Statement (Dr.) | Balance Sheet (Dr.) |
|---|---|---|---|---|---|---|
| Purchase | 2,00,000 | 2,00,000 | 2,00,000 | |||
| Wages | 50,000 | 50,000 | 50,000 | |||
| Salary | 35,000 | 35,000 | 35,000 | |||
| Prepaid rent | 20,000 | 8,000 | 12,000 | 8,000 | 12,000 | |
| Machinery | 3,50,000 | 35,000 | 3,50,000 | 3,15,000 | ||
| Furniture | 1,60,000 | 1,60,000 | 1,60,000 | |||
| Debtors | 40,000 | 40,000 | 40,000 | |||
| Cash | 15,000 | 15,000 | 15,000 | |||
| Sales | 4,50,000 | |||||
| Share capital | 3,50,000 | |||||
| Retained earnings | 70,000 | |||||
| Rent expense | 12,000 | 12,000 | ||||
| Depreciation on machinery | 35,000 | 35,000 | ||||
| Total | 8,70,000 | 47,000 | 43,000 | 8,74,000 | 3,30,000 | 8,74,000 |
Explanation of Adjustments:
Prepaid rent expired Rs. 12,000
- Adjustment: Rs. 8,000 (20,000 - 12,000) remains prepaid.
- Rent expense: Rs. 12,000 (Dr.)
- Prepaid rent: Rs. 8,000 (Cr.)
Depreciation on machinery @10%
- Calculation: 10% of Rs. 3,50,000 = Rs. 35,000
- Depreciation expense: Rs. 35,000 (Dr.)
- Machinery: Rs. 35,000 (Cr.)
Final Adjusted Trial Balance Totals:
- Income Statement (Dr.): Rs. 3,30,000
- Balance Sheet (Dr.): Rs. 8,74,000
Note: The worksheet ensures that all adjustments are properly recorded before preparing the final accounts. The totals of both sides of the worksheet must match.
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