Question No 02 Chapter No 18
Outstanding expenses
02.The following balances have been taken from the books of Rajiv Sharma as of 31st march 2018
| Dr.Rs | Cr. Rs. | |
| Commission | 18,000 | – |
| Insurance | 12,000 | – |
The following amount were du but not paid as on 31st March 2018
- Commission has been prepaid Rs 7,000
- Insurance is paid for the year ending 30th June 2018
Record the adjusting entries and also show their treatment in the final account
The solution of Question No 02 Chapter No 18:-
| Adjustment entries | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| Prepaid Commission A/c | Dr. | 7,000 | |||
| To Commission A/c | 7,000 | ||||
| (Being commission has been prepaid .) | |||||
| Prepaid Insurance A/c | Dr. | 3,000 | |||
| To Insurance A/c | 3,000 | ||||
| (Being insurance has been prepaid .) | |||||
| Profit & Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| By Commission A/c | 18,000 | ||||
| Less : Prepaid Commission | 7,000 | 11,000 | |||
| By Insurance A/c | 12,000 | ||||
| Less: prepaid insurance | 3,000 | 9,000 | |||
| – | – | ||||
| Balance Sheet | |||||
| Labilities |
Amount | Assets |
Amount | ||
| Prepaid commission | 7,000 | ||||
| Prepaid insurance | 3,000 | ||||
| – | – | ||||
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
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Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 14 – Provisions and Reserves
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Chapter No. 15 – Bills of Exchange
Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)