Question No 02 Chapter No 18 – USHA Publication 11 Class

Question No 02 Chapter No 18

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

  1. Commission has been prepaid Rs 7,000
  2. 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: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

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. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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