Question

Prepare journal entries -> Post in ledgers Balance -> Pass adjustments -> Prepare Adjusted Trial -> FS Prepare Trial -> Shareholders purchased 600,000 shares (each share for Rs 10) in January and interim dividend is paid at the rate of Rs 1.5 per share in June and final dividend in December at the rate of Rs 2.0 per share 1. In February, the company made sales of Rs 80,000 and received 50,000 in cash. The remaining amount 2. was received in April. A sale for similar terms was made in November for Rs 80,000 3. The company pays following in cash: Rs 10,000 gas bill, Rs 25,000 traveling, Rs 5,000 for everyday supplies. 4 The company purchased a car in Feb but decided to pay 10% up front and remaining amount in November. Car Value Rs 1,800,000 5. Rent for one year paid in advance in October amounting to Rs 1,200,000. Pass initial entry and entries for October, November and December 6. The Company obtained a loan from the bank in March amounting to Rs 1.000.000 and paid first installment in September. The loan is repayable in 8 equal installments Total entries : 15 ADJUSTMENTS At December end Salaries have not been paid to employees for 2 months amounting to Rs 75,000. 1. Rs 80,000 cash received in advance for an order that will be completed and supplied in February. 2.

please explain each and every step

Answer 1

Jawunal Enhies 0,00 000 _69,00,000 to) C600000 x 10) dc ank J- Jan alc Dr capidal the compsny share 70 Beiog_shares issue d divi dend DDDD 2 June Iatenim alc 90000a 7o Bank alc (8etng dividend oaid June .) C600000 x 2) Diuedend alc 3. Dec 12000 0 0 To Bank alc 12,00,0DD pacaid 21sh) fiaal dividena in De cemben Bsing and la s.sappopnalion alc dividend 4. Dec P DY 21,00,00D als gnterim 900,000 Dividend alc 12,00,000 paid ransed to at year end) dividend CBeing aad he alc appajonahion Ta ansachion 2 So,000 D 30000 S.feb-Cash alc alc Salea alc made by сompany pantally сне дit) TO 8o 000. (eing saleo on cash and pantally

6 Apmil- Cash alc Dr 30, 006 pebtoa s 30 000 recefued alc To (Being remainiag auil). amount 7. Nov Cash Dr Deb tos ale 30,00 0 Dr Sales ale made by uing sales panlrally on caob. company and partially credet) On Toansachon 3 alc Gas Bill Dr lo,000 Taovelling alc Dr 25,000 LEvexy day suppliea MiscellaneoUs a/DSo00 alc cash To 4o,0op expeases made bycompaany cash 2 CBeing Transaction 4 18,00,900 9 Feb-Car alc cash alc To Panty alc purchaac y company paid upant 16.20,000 To and Reing is amaunt

10. Nov - faxyale 16120,000 cash alc 16,2000 paid To CBeiagenainisg in noveml amoun DecLepxeciaon alc (12,00,DD0 x_20'. x 3300b0 33.0.00D alc TO (ax at 20°1. 0 LBeingdepretatiean chagad Rale odepreiation other mo ntho as sumed QD 20°/. Aknnalively any be ale assumed Can Iransacion 5 aauance alc 12.0-Rent Dr 12,00,000. 12,0000 0 october x alc Cash TO paid Reat yeau). _On e Reingaduane alc Rend 00,0 13.0ct ale 1p0,000 in advance To Ront Rent alc r 00,000 Nov aduance als To Rent ale FUOY 10 bec- br. 00000 in advance ale Rent SUDAL anedomz4 beiny alu Cal culaton amount advance er especkive Menl ANote alc months 12,00,000 12monlh CProportional) l0000o/Tmonth

Tronsachinn 141Ma3-Cash alc To loan pa able alc obtained bj.Company). OD (8eing loan doan pay ableal r To cash ale 1S 125000 12 5 o00 in staumontcaladated LReing loan e,o,as 000 -pai d absence oinomaon n lcan -12 S00D iatereat 9n the eassed here eny component no Le dger accountr alc Cash/Bank PaUr hiculans Amouat Dale Amt Panticulans pate By_diuidend al2100000 By Gas hill al By_trovelling alel25,p00 miss. expalc S00D Toshas capidalal 69,00,00 50,000 10000 To Sales ale FEB By By Cat aic Ry Party Sy intia adrakf To Debtors alc 30200 APR To Sales al ,00D FEB Nov G20000 al c payablel topeaos Nov To loan MAR 1200000 OCT By loan B balare cla 86S0o0 peugablall 12.5000 SEPT DEC 7130 000

share aapital ale Am Par h°culart pale Amount Panticulara D 000 By ash /Bank al JAnu Ry balance dd60000 DEC gnkerim dividend alc Bank alc 900,000 Sppdidiiorate JUNE To 9,00,000 at balonce eld DEC Oividend alc 12,00,000 To Bank ale DEC By profit & toss app. atc DEC 12,00,000 Laokit To interim diu ale 9,00 000 and losc appmpriahon alc DC To Dividend ale DE C 21,00 00s 12,00,00D By halance cla.

Deblou alc FEB TO Sal e clc 30,00 0 Gy rash alc y balance dd 39,000 APR 70 Sales alc 30,000 30,000 DIEC alc Sales 70 balance dd DEC FEB Вy (ash alc S000D By Debtoas alc 30,00D BfCash al Bu bebtoT alr i3000o SD006 Gas Bill a By_P&L alc/ By balane cA) calh alc To 10,000 Df c Trovellingals DE C 2S000 To Cash ale y_balance cla miscellaneous expensea alc ooD By gL ale balance cld S000 To Cash alc DE C

(an al 7o canh ale FE 13 By deprtediahon ale83000 180 00 0 REC |16,29,008 u Paxly alc By balancecld DEC Panty ale 16,29 000C cash alc TO Car alc Depnediahon al 3.30000DEC 330DDD 70 DE C Car alc By balance dd. aduonce als Rent h20nopo ocT By Rent alc By Rent alc alc To cash 12000DO Ост 100000 0000 o NO V DE C By Rant ad JO0000 ej balance cld DEC 900000 Rent ale DEC B P9Lalc To Rent n ady. alc ad ale OCT Jo0000 30.00 DD 00000 To Rent io By balance cld Nov Rent in adv alc lo000 0 CC

oayable ale By Caoh alc Loan 70 canh alc mAR 12S000 SEP 7o balance d 1500o TRIAL BEFORE Aj BALAUCE Caedik. Panhculars Pobit (ash and Jba alc Bank 386S00D Share capital & loss oppopriaindi 21,00,000 alc Paait. pebtors alc Зо о00 alc 160000 Saleo Gas Bill ale 10000 Iravellingale miscellaneous expenses alc 2SO0D SOO0 140 00 D Сas alc alc 330000 Peprecahion aduanie al 900000 ent in 30000D ale Rent 87 So00 loan payable al Fo 3S000 70 35 0 DO

Adushnent alc Salaniea payabk salory endi es Salaries 7S000 alc 7o 90aSE Beiag auela ndbag oa is 2 तञ्पतण्ठएप्पा Cash alc 80000 a duane aduanie eceived alc cedng supplie d 0T der is to received hor which neat yeat be & losc ale ale ale T0 1zaveliag misc exps alc 25000 S9o0 To epeiaan Rent alc 330000 3 DOO0 O t60000 Saleo alc Taading ale To 120ding 160000 al c Pr LyL alc S85000 ppmpniahan aleD Probit & Lo ss alc 70

Stalements Financial Trading Pakit bloscale 160000 BySales alc Poi and los. y 11ading al60000 y 9Lapp.ale 585000 To has bill alc alc 0000 Txsweling 2500D S000 70 Misc Depxecahon al Rent al 3300D D T0 300000 T0 7S000 Saleries al 70 appmypriaion ale apital al 268 DD alc 1200000 T0 dividend 70 ia denim diuidend als go0000 S8SDDO P9L. all

sheet Balonie Liabiliies Assel Amound Share Capital loan payahle ale Sal arties payab le Aduance eceived _60,00 000 Cash and Bank ale 7SODO (1265odo 194S000 800D D 7500 0 Dobto 30000 |1410000 80000 Cart gdvance P1 app. alc (Loss)268S000 Rent in 900006 703 000 D 70B000D