As on 31.3.2015 the ratio of capital and reserve is 4:1 in the business of Bhavna.

The balances of other accounts

on that date are as under. Prepare final accounts from the balance and adjustments:
Name of accounts Amount (Rs.) Name of accounts Amount (Rs.)
Opening stock 30,000 Bad debt reserve 6,000
Purchase 1,00,000 Rent paid (Rs.1,200 per month) 12,000
Sales 2,50,000 Carriage inwards 4,000
Debtors 1,00,000 Cash Balance 30,000
Creditors 20,000 Office expenses 20,000
Machinery 2,00,000 Rent received 3,000
10% loan taken from Pratibha (From 1.10.14) 50,000 Patents 20,000
Insurance premium 9,000 Discount received 2,000
Advertisement expense 6,000 Depreciation on furniture 2,000
Furniture 8,000
Adjustments:
1. Closing stock is Rs.80,000 of which market value of 10% goods is 20% less. Goods of Rs.10,000 needs to be
repaired for Rs.1,000.
2. Goods of Rs.5,000 are distributed as free samples, which is not recorded.
3. Goods of Rs.6,000 withdrawn by Bhavna for her personal use, which is recorded in the sales book. Purchase
invoice of Rs.4,000 is not recorded in the purchase book.
4.I nsurance premium of Rs.3,000 paid for the year ending as on 30.6.2015 is included in insurance premium.
5. Out of total debtors a debtor of Rs.10,000 is declared insolvent and his receiver has declared first and final
dividend of 80 paisa per rupee. Provide 5% bad debt reserve on debtors.
6. Calculate 20% depreciation on machinery.
7. Patents are to be revalued at Rs.17,000
8. Office salary of Rs.1,500 is outstanding. Which is included in office expense.

As on 31.3.2015 the ratio of capital and reserve is 4:1 in the business of Bhavna. The balances of other accounts
on that date are as under. Prepare final accounts from the balance and adjustments:
Name of accounts Amount (Rs.) Name of accounts Amount (Rs.)
Opening stock 30,000 Bad debt reserve 6,000
Purchase 1,00,000 Rent paid (Rs.1,200 per month) 12,000
Sales 2,50,000 Carriage inwards 4,000
Debtors 1,00,000 Cash Balance 30,000
Creditors 20,000 Office expenses 20,000
Machinery 2,00,000 Rent received 3,000
10% loan taken from Pratibha (From 1.10.14) 50,000 Patents 20,000
Insurance premium 9,000 Discount received 2,000
Advertisement expense 6,000 Depreciation on furniture 2,000
Furniture 8,000
Adjustments:
1. Closing stock is Rs.80,000 of which market value of 10% goods is 20% less. Goods of Rs.10,000 needs to be
repaired for Rs.1,000.
2. Goods of Rs.5,000 are distributed as free samples, which is not recorded.
3. Goods of Rs.6,000 withdrawn by Bhavna for her personal use, which is recorded in the sales book. Purchase
invoice of Rs.4,000 is not recorded in the purchase book.
4.I nsurance premium of Rs.3,000 paid for the year ending as on 30.6.2015 is included in insurance premium.
5. Out of total debtors a debtor of Rs.10,000 is declared insolvent and his receiver has declared first and final
dividend of 80 paisa per rupee. Provide 5% bad debt reserve on debtors.
6. Calculate 20% depreciation on machinery.
7. Patents are to be revalued at Rs.17,000
8. Office salary of Rs.1,500 is outstanding. Which is included in office expense.