Page 157 - debkxi

Adjustments in Preparation of Financial Statements 19.17

Fixed Assets
Machinery 50,000
Add: Installation of Machinery 1,000
51,000
Less: Depreciation (WN 2) 4,575 46,425
Furniture and Fittings 30,000
Add: New Furniture 20,000
Assembly of Furniture 1,000
51,000
Less: Depreciation 4,575 46,425
Building 60,000
Less: Depreciation 3,000 57,000
4,79,450 4,79,450

Working Notes:
1. An event occurring after the date of Balance Sheet (i.e., fire broke out on 1st April, 2024) does not affect the
Balance Sheet prepared as at 31st March, 2024.

 10   9 10 
2. Depreciation on: Machinery = ` 30,000  100   +   ` 21,000  12 100    = ` 3,000 + ` 1,575 = ` 4,575;


 10   9 10 
Furniture =  ` 30,000    ` 21,000    = ` 3,000 + ` 1,575 = ` 4,575.

 100   12 100 
Unsolved Questions

1. The following is the Trial Balance of Amrit Raj as at 31st March, 2012:
Particulars Dr. (`) Cr. (`)
Capital ................................................................................................................................................................ ... 25,000
Building ................................................................................................................................................................ 30,000 ...
Furniture ................................................................................................................................................................ 2,640 ...
Scooter ................................................................................................................................................................ 4,000 ...
Sales Return and Purchases Return .................................................................................................................. 2,300 1,600
Opening Stock .......................................................................................................................................................... 8,000 ...
Purchases and Sales ............................................................................................................................................... 33,800 56,040
Bad Debts ................................................................................................................................................................ 300 ...
Carriage Inwards ...................................................................................................................................................... 700 ...
General Expenses .................................................................................................................................................... 1,200 ...
Bad Debts Provision ............................................................................................................................................... ... 700
Bank Loan ................................................................................................................................................................ ... 5,000
Interest on Bank Loan ............................................................................................................................................ 300 ...
Commission ............................................................................................................................................................... ... 900
Insurance and Taxes ............................................................................................................................................... 2,000 ...
Scooter Expenses .................................................................................................................................................... 2,600 ...
Salaries ................................................................................................................................................................ 4,400 ...
Cash in Hand ............................................................................................................................................................. 2,000 ...
Debtors and Creditors ........................................................................................................................................... 3,000 8,000
Total 97,240 97,240