Tag: adjustments in preparation of financial statements
Questions Related to adjustments in preparation of financial statements
Provision for discount on debtors shall be made on ____________________.
While preparing final account, to record commissions payable to manager- which of the following adjustment entry will be passed?
| Profit & Loss A/cTo Commission Payable A/c | Dr. |
|---|---|
| Commission Payable A/cTo Profit & Loss A/c | Dr. |
| Manager A/cTo Commission Payable A/c | Dr. |
| Profit & Loss A/cTo Manager A/c | Dr. |
Debtors appeared in balance sheet at Rs. $18,525$ after making following adjustment.
Bad debt written off Rs. $400$.
Provision for discount on debtors @ $2.5\%$.
Provision for bad debt @ $5\%$.
Debtors as per trial balance $=$?
Extract of trial balance of Mr.Z is as follows.
| Particulars | Dr. Rs. | Cr. Rs. |
|---|---|---|
| Debtors | $24,000$ | - |
| Provisions for bad debts | - | $400$ |
Included amongst the debtors is Rs. $3,000$ due to Ram and included among the creditors Rs. $1,000$ due to him.
Provision for bad debts to created at @ $5\%$ and for discount @ $2\%$. Debtors will be shown at balance at.
During the year $2014-2015$, the profit of a business before charging Sales Manager's commission was Rs. $1,89,000$. If the Sales Manager's commission is $5\%$ on profit after charging his commission, then the total amount of commission payable to manager is?
Net profit before charging commission to manager - Rs. $2,20,000$. The manager is entitled to commission of $10\%$ on net profit after charging such commission. The commission payable to manager will be.
From the following details find out the closing capital that will be appear in balance sheet on $31-12-2015$.
| Particulars | Rs. |
|---|---|
| Capital on $1-1-2015$ | $14,00,000$ |
| Drawings | $5,000$ |
| Repair | $2,000$ |
| Net profit before manager commission | $6,62,900$ |
| Debtors | $1,50,000$ |
Provision for bad debts @ $6\%$.
The manager is entitled commission of $5\%$ of net profit after charging his commission.
Net profit before charging commission to manager - Rs. $2,20,000$. The manager is entitled to commission of $10\%$ on net profit before charging such commission. The commission payable to manager will be.
Net profit before charging commission to General & Sales manager - Rs. $1,65,920$
The General Manager is entitled to commission of $10\%$ on net profit after charging such commission and commission of Sales Manager.
The Sales Manager is entitled to commission of $5\%$ on net profit after charging such commission and commission of General Manager.
Commission payable to General Manager- Rs. ___________ & Sales Manager - Rs. __________.
Capital is all assets less fictitious assets.