Question No 16 Chapter No 11 - T.S. Grewal 11 Class

Question No 16 Chapter No 11

16. (Adjustment Entries). From the following information available on 31st March 2018, pass the necessary Adjustment Entries in the Journal for the yare ending on that date:

(i) Interest accrued Rs 2,500.
(ii) Wages for March 2018 outstanding Rs 10,000.
(iii) Insurance prepaid Rs 1,500.
(iv) Commission due to manager 6% on net profit after charging such commission. The profit before charging such commission was Rs 1,06,000
(v) Interest due on loan but not paid. Loan of Rs 1,50,000 was taken at 9% p.a. 9 months before the end of the year

The solution of Question No 16 Chapter 11

Date	Particulars		L.F.	Debit	Credit
(i)	Accrued Interest A/c	Dr		2,500
	To Interest Received A/c				2,500
	(Being interest accrued but not received )
(ii)	Wages A/c	Dr		10,000
	To Outstanding Wages A/c				10,000
	(Being Wages not been paid )
(iii)	Prepaid Insurance A/c	Dr		1,500
	To Insurance A/c				1,500
	(Being Insurance paid in advance )
(iv)	Manager Commission A/c	Dr		6,000
	To Outstanding Manager Commission A/c				6,000
	(Being Manger’s Commission not been Paid )
(v)	Interest on loan A/c			10,125
	To Outstanding Interest on loan A/c				10,125
	(Being Interest on loan not been Paid )

 

 

 

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Also, Check out the solved question of previous Chapters: -

• Chapter No. 5 - Accounting Equation
• Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 8 - Journal
• Chapter No. 9 - Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book

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