Page 238 - ISCDEBK-XI

21.26 Double Entry Book Keeping—ISC XI
(b) Corrected Trial Balance as on 31st March, 2022.
(i) Profit before the following corrections—` 22,950.
(ii) Purchase of goods from Gayathri recorded as ` 5,900 instead of ` 9,500.
(iii) Payment to Padma posted to Priya’s Account—` 22,200.
(iv) Electricity bill of residence posted to Electricity Expenses Account—` 18,000.
(v) Cash Balance as on 31st March, 2022 recorded as ` 90,000 instead of ` 9,000.
(vi) Cash sale ` 45,000 not recorded at all.
(vii) Salary to Pappu debited to his Personal Account.
(viii) Depreciation on Car provided at 15% instead of 20%.
(ix) Credit card expenses of Balaji debited to Interest Account—` 15,000.
(x) Loan from Yamini shown as cash sale—` 12,500.
TRIAL BALANCE
as on 31st March, 2022
Heads of Accounts Dr. (`) Cr. (`)
Profit and Loss ... 22,950
Gayathri 3,600 ...
Padma ... 22,200
Priya 22,200 ...
Cash 90,000 ...
Pappu 24,000 ...
Car 42,500 ...
Suspense ... 81,000
Capital ... 56,150
Total 1,82,300 1,82,300
(ICWA—Foundation)
Solution: (a) In the Books of Balaji
PROFIT & LOSS ADJUSTMENT ACCOUNT
Dr. for the year ended 31st March, 2022 Cr.
Particulars ` Particulars `
To Gayathri (` 9,500 – ` 5,900) 3,600 By Balance b/d 22,950
To Pappu 24,000 By Capital A/c (Electricity Bill) 18,000
To Depreciation on Car (WN 2) 2,500 By Cash A/c (Cash Sale) 45,000
To Loan from Yamini’s A/c 12,500 By Capital (Credit Card Expenses) 15,000
To Balance c/d 58,350
1,00,950 1,00,950

(b) TRIAL BALANCE
as on 31st March, 2022 (after corrections)
Heads of Accounts Dr. (`) Cr. (`)
Profit and Loss ... 58,350
Cash ( WN 1) 54,000 ...
Loan from Yamini ... 12,500
Car 40,000 ...
Capital (WN 3) ... 23,150
Total 94,000 94,000