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

Explain how the following may be ascertained from incomplete records:
Payments to creditors and collection from debtors.

Mr. Gauri Shankar, a businessman pays ₹ 1 lac per month as instalment for his newly acquired business premises. Is it a revenue expenditure or capital expenditure?

Under which accounting concept is Provision for Doubtful Debts made?

Write one difference between a Trial Balance and a Balance Sheet.

Ashok drew on Rakesh three Bills of Exchange respectively on 29th, 30th and 31st January, 2019. The term in each case is 1 month. What will be the due date in each case?

Calculate Closing Stock from the following:
Opening Stock ₹ 36,000; Net Purchases ₹ 45,000; Salaries and Wages ₹ 7,000; Sales ₹ 60,000; Gross Loss ₹ 4,000; Freight Inwards ₹ 6,000.

Calculate Purchases:

	₹
Cost of Goods Sold	65,000
Stock in the beginning	4,000
Closing Stock	5,000

Calculate the value of Closing Stock from the following information:

	₹
Purchases	93,000
Wages	20,000
Sales	1,20,000
Carriage Outwards	3,200
Opening Stock	16,000
Rate of Gross Profit 25% on Cost.

Trial Balance is prepared after preparing the Profit and Loss Account Comment.

Give the adjustment entry and accounting treatment of the following items while preparing financial statements:

1. Outstanding Salaries.
2. Accrued Interest.