Page 155 - debkxi

Adjustments in Preparation of Financial Statements 19.15

Bad Debts ................................................................................................................................................................................ 3,000 ...
Investments ............................................................................................................................................................................. 50,000 ...
Loan from Bank ...................................................................................................................................................................... ... 50,000
Cash in Hand ........................................................................................................................................................................... 60,000 ...
Debtors ..................................................................................................................................................................................... 2,10,000 ...
Creditors ................................................................................................................................................................................... ... 1,46,400
Provision for Doubtful Debts ............................................................................................................................................ ... 10,000
Provision for Discount on Debtors .................................................................................................................................. ... 2,400
Drawings................................................................................................................................................................................... 12,775 ...
Capital........................................................................................................................................................................................ ... 3,08,000
Machinery ................................................................................................................................................................................ 50,000 ...
Building ..................................................................................................................................................................................... 60,000 ...
Furniture and Fittings .......................................................................................................................................................... 30,000 ...
Outstanding Office Expenses............................................................................................................................................ ... 3,200
Prepaid Expenses .................................................................................................................................................................. 1,200 ...
Input CGST ............................................................................................................................................................................... 1,000 ...
Input SGST ............................................................................................................................................................................... 1,000 ...
Total 12,52,000 12,52,000

Additional Information:
(i) Write-off ` 6,000 as bad debts.

(ii) Additional discount of ` 4,000 given to debtors and additional discount of
` 2,000 received from creditors.

(iii) Maintain a provision for discount on debtors @ 2% and also maintain provision
for doubtful debts @ 10% on debtors.

(iv) Rent has been paid for 11 months and has been received for 13 months.
(v) A machine costing ` 20,000 was purchased on 1st July, 2023 and accounted in

the books of account. However, wages of ` 1,000 for its installation have been
debited to Miscellaneous Expenses Account.
(vi) Furniture costing ` 20,000 was purchased on 1st July, 2023 but it was not
recorded in the books as no payment was made for it. Wages ` 1,000 paid for its
assembly have been debited to Miscellaneous Expenses Account.

(vii) Depreciate furniture @ 10% p.a., machinery @ 10% p.a., and building @ 5% p.a.

(viii) Goods costing ` 5,000 were taken by proprietor for personal use.

(ix) A fire broke out on 1st April, 2024 destroying goods costing ` 25,000.