Adjustments in Preparation of Financial Statements — Account STD 11 Commerce — Question

Give the adjustment entry and accounting treatment of the following items while preparing financial statements:
i. Outstanding Salaries
ii. Accrued Interest

Mohan maintains books on Single Entry System. He gives you the following information:

	₹
Capital on 1st April, 2018	15,200
Capital on 31st March, 2019	16,900
Drawings made during the year	4,800
Capital introduced on 1st August, 2018	2,000

You are required to calculate the Profit or Loss made by Mohan.

Give one feature of a Computer.

Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018-19.

Opening Capital - ₹ 1,30,000	Drawings during the year ₹ 50,000
Closing Capital - ₹ 2,00,000	Profit made during the year ₹ 1,00,000

Briefly explain the purpose of grouping and sorting of the data as a means to refine a report.

On 1st April, 2017, Shiv had a Provision for Doubtful Debts of ₹ 650. On 31st March, 2018, total debtors amounted to ₹ 18,400 out of which ₹ 400 were bad and had to be written off. It was decided to maintain a Provision for Doubtful Debts at 5% of the debtors.
On 31st March, 2019, debtors were ₹ 10,320 out of which ₹ 320 had to be written off as bad debts. Provision for Doubtful Debts is to be maintained at 5% of the Debtors.
Show the Bad Debts Account and Provision for Doubtful Debts Account for the years ended on 31st March, 2018 and 2019.

Calculate the amount of bills receivable during the year.

	₹
Opening balance of bills receivable.	75,000
Bill dishonoured.	25,000
Bills collected (honoured)	1,30,000
Bills receivable endorsed to creditors.	15,000
Closing balance of bills receivable.	65,000

What is meant by Operating Profit?

Calculate the amount of bills receivable dishonoured from the following information.

	₹
Opening debtors.	45,000
Closing debtors.	56,000
Discount allowed.	2,500
Sales returns.	8,500
Irrecoverable amount.	4,000
Bills receivables received.	12,000
Bills receivable dishonoured.	3,000
Cheque dishonoured.	7,700
Cash sales.	80,000
Cash received from debtors.	2,30,000
Cheque received from debtors.	25,000

A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.