12th Text book reference. Book Keeping & Accountancy

1. BOOK KEEPING & ACCOUNTANCY
1.PARTNERSHIP FINAL ACCOUNTS
(Adjustments & their effects)
As Per New Syllabus June 2020.
1
Ajay Janardan Gursale. ( M.Com.B.Ed.)
U. P. L. Patil Junior College of Science, Commerce & Arts.
Kharepatan, Tal.- Kankavli, Dist.- Sindhudurg.

2. 1. Closing Stock
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Closing Stock A/c ****
Liabilities Amt. Assets Amt.
Closing Stock A/c ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 2
Balance sheet

3. 2. Outstanding Expenses
As per Expense whether Trading A/c or P & L A/c
Dr. Trading A/c or P& L A/c Cr.
Particulars Amt Particulars Amt.
To Expenses A/c ****
Add : Outstanding Exp. *** ****
Balance sheet
Liabilities Amt. Assets Amt.
Outstanding Exp. A/c ***
Ajay Janardan Gursale. ( M.Com.B.Ed.) 3

4. 3. Prepaid / Advance Expenses
As per Expense whether Trading A/c or P & L A/c
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
To Expenses A/c ****
Less : Prepaid Expenses *** ****
Balance sheet
Liabilities Amt. Assets Amt.
Prepaid Expenses A/c ***
Ajay Janardan Gursale. ( M.Com.B.Ed.) 4

5. 4. Advance Income
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Income Recd.A/c ****
Less : Advance
Income A/c
*** ****
Balance sheet
Liabilities Amt. Assets Amt.
Advance Income A/c ***
Ajay Janardan Gursale. ( M.Com.B.Ed.) 5

6. 5. Income Receivable / Accrued Income
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
By Interest Recd.A/c ****
Add : Accrued Interest
A/c
*** ****
Balance sheet
Liabilities Amt. Assets Amt.
Accrued Interest A/c ***
Ajay Janardan Gursale. ( M.Com.B.Ed.) 6

7. 6. New Bad Debts
(Given in Adjustments)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Bad Debts A/c ****
Add : New Bad Debts A/c *** ****
Balance Sheet
Particulars A B Particulars A B
Sundry Debtors ****
Less : New Bad Debts A/c *** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 7

8. 7.Reserve for Doubtful Debts
(New R.D.D. Given in Adjustment)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Bad Debts A/c ****
Add : New R.D.D. A/c *** ****
Balance sheet
Liabilities Amt. Assets Amt.
Sundry Debtors ****
Less : New R.D.D. A/c *** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 8

9. 8.Reserve for Discount on Debtors
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Discount allowed on ***
sundry debtors A/c
Balance sheet
Liabilities Amt. Assets Amt.
Sundry Debtors ****
Less : Discount allowed *** ****
On sundry debtors A/c
Ajay Janardan Gursale. ( M.Com.B.Ed.) 9

10. 9. Depreciation on Asset
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Depreciation on asset ***
Balance sheet
Liabilities Amt. Assets Amt.
Machinery ****
Less : Depreciation *** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 10

11. 10.(i)Interest on Capital
(Expenses of Business)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Interest on Capital A ***
Interest on Capital B *** ****
Dr. Partner’s Capital A/c Cr.
Particulars A B Particulars A B
By P & L A/c *** ***
( Interest on Capital
to Partner)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 11

12. 10.(ii)Interest on Drawing of Partners
(Income of the Business)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
By Interest on Drawing A ***
Interest on Drawing B *** ***
Dr. Partner’s Capital A/c Cr.
Particulars A B Particulars A B
To Interest on Drawing a/c *** ***
Ajay Janardan Gursale. ( M.Com.B.Ed.) 12

13. 10.(iii) Interest on Loan Taken (Liability)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Outstanding Interest a/c ***
Balance sheet
Liabilities Amt. Assets Amt.
Loan Taken ****
Add : Outstanding
Interest
*** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 13

14. 11. Accrued Interest on Investment / Loan Taken
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
By Accrued Interest ***
Balance sheet
Liabilities Amt. Assets Amt.
Investments ****
Add : Accrued Interest *** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 14

15. 12.(i)Insured goods destroyed by fire (Full claim )
Balance sheet
Liabilities Amt. Assets Amt.
Insurance Claim a/c ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 15
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Goods loss by
fire a/c
****

16. 12.(ii)Insured goods destroyed by fire (Part claim )
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Loss by Fire A/c ****
Balance sheet
Liabilities Amt. Assets Amt.
Insurance Claim ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 16
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Goods loss by
fire a/c
****

17. 12.(iii) Uninsured goods destroyed by fire (Total Loss )
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
(Total Loss amount)
To Loss by Fire A/c ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 17
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Goods loss by fire
a/c
****

18. 13. Goods Stolen (Total Loss )
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
(Total Loss amount)
To Loss by Stolen A/c ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 18
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Goods Stolen a/c ****

19. 14. Goods distributed as free sample (Advertisement )
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Advertisement A/c ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 19
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Goods distributed
as free sample a/c
****

20. 15.Goods withdrawn by Partners for personal use
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Goods withdrawn by ***
Partners A & B *** ****
Dr. Partner’s Capital A/c Cr.
Particulars A B Particulars A B
To Drawing a/c (Goods) *** ***
Ajay Janardan Gursale. ( M.Com.B.Ed.) 20

21. 16.(i) Unrecorded Purchases
Balance sheet
Liabilities Amt. Assets Amt.
Sundry Creditors ****
Add : Unrecorded
Purchases A/c
**** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 21
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
To Purchases A/c ****
Add : Unrecorded
Purchases A/c
**** ****

22. 16.(ii) Unrecorded Sales
Balance sheet
Liabilities Amt. Assets Amt.
Sundry Debtors ****
Add : Unrecorded
Sales
*** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 22
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Sales A/c ****
Add : Unrecorded
Sales
*** ****

23. 17.(i) Capital Exp. included in Revenue Exp.(Exa.)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Transport Charges ****
Less: Transport paid for
New Machinery
*** ****
Balance sheet
Liabilities Amt. Assets Amt.
Machinery ****
Add : Transport charges
on New Machinery
*** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 23

24. 17.(ii) Revenue Exp. Included in Capital Exp.(Exa.)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Repairs &
maintenance a/c
****
Add : Repairs to
machinery
*** ****
Balance sheet
Liabilities Amt. Assets Amt.
Machinery ****
Less: Repairs to
Machinery A/c
*** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 24

25. 18. Bills Receivable Dishonoured
Balance sheet
Liabilities Amt. Assets Amt.
Sundry Debtors ****
Add : B.R. Dishonoured *** ****
Bills Receivable ****
Less: B.R. Dishonoured *** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 25

26. 19. Bills Payable Dishonoured
Balance sheet
Liabilities Amt. Assets Amt.
Sundry Creditors ****
Add : B.P.
Dishonoured
*** ****
Bills Payable ****
Less: B.P.
Dishonoured
*** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 26

27. 20. Deferred Expenses of Advertisement paid for
5years.
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Advertisement Exp
A/c (for 1 year )
****
Balance sheet
Liabilities Amt. Assets Amt.
Deferred Advt. Exp.A/c ****
( for 4 years)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 27

28. 21. Revenue Receipts included in Capital Receipt
Balance sheet
Liabilities Amt. Assets Amt.
Capital *****
Less : Wrongly
recorded as sale of
furniture
**** ****
Ajay Janardan Gursale. ( M.Com.B.Ed.) 28
DR. Trading A/c Cr.
Particulars Amt Particulars Amt.
By Sales A/c ****
Add : Sale of goods *** ****

29. 22. Commission to Partners as
Percentage of Gross Profit / Sales
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Commission to
Partner A ***
Partner B *** ****
Dr. Partner’s Capital A/c Cr.
Particulars A B Particulars A B
ByCommission to *** ***
Partner
Ajay Janardan Gursale. ( M.Com.B.Ed.) 29

30. Hidden Adjustments given in Trial Balance
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Salary A/c ****
Add : Outstanding Salary
a/c
*** ****
( for 2 Months)
Balance sheet
Liabilities Amt. Assets Amt.
Outstanding Salary A/c ****
( for 2 Months)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 30
1. Salaries paid for 10 months

31. 2. Insurance Premium Paid for 1 Year ending 30th June,2019.
(Accounting year ends on 31st March 2019)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Insurance ****
Less : Prepaid Insurance A/c *** ****
( for 3 months)
Balance sheet
Liabilities Amt. Assets Amt.
Prepaid Insurance A/c ***
( for 3 months)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 31

32. 3. Advertisement Expenses for 4 years
(Also refer previous Adj. no. 20)
Both effects are correct. Apply either Adj.No.20 or this.
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Advertisement Exp
A/c ( 5years)
****
Less : Deferred
Advertisement Exp A/c
(for 4 year )
*** ***
(For 1
year)
Balance sheet
Liabilities Amt. Assets Amt.
Deferred Advt. Exp.A/c ****
( for 4 years)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 32

33. 4. Rent Received for 11 months.
(Accrued Rent / Rent Receivable for 1 month)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Rent Received A/c
(for 11 months)
****
Add : Accrued Rent
A/c (for 1 month)
*** ****
(For 1
year)
Balance sheet
Liabilities Amt. Assets Amt.
Accrued Rent A/c ***
( for 1 months)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 33

34. 5. 10% Loan Borrowed on 1st Jan.2018)
(Accounting year ends on 31st March, 2018)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Outstanding Interest
on Loan A/c
( For 3 Month)
****
Balance sheet
Liabilities Amt. Assets Amt.
10% Loan taken A/c
(1st Jan, 2018)
****
Add : Outstanding
Interest A/c
*** ****
( for 3 months) Ajay Janardan Gursale. ( M.Com.B.Ed.) 34

35. 6. 16% Investment Purchased on 1st Jan.2019)
(Accounting year ends on 31st March, 2019)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Accrued Interest
on Investment A/c
( For 3 Month)
****
Balance sheet
Liabilities Amt. Assets Amt.
16% Investment A/c
(1st Jan, 2019)
****
Add : Accrued Interest A/c *** ****
( for 3 months)
Ajay Janardan Gursale. ( M.Com.B.Ed.) 35

36. 7. 10% Government Bonds
(If date not given, Accrued interest for 1 year @ 10%)
DR. Profit & Loss A/c Cr.
Particulars Amt Particulars Amt.
To Accrued Interest
on Investment A/c
( For 1 year )
****
Balance sheet
Liabilities Amt. Assets Amt.
10% Government Bond
A/c
****
Add : Accrued Interest A/c *** ****
( for 1 year )
Ajay Janardan Gursale. ( M.Com.B.Ed.) 36