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

Question No.16 Chapter No.11 T.S. Grewal 1 Book 2019 Solution min min 1 1024x576 - 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 )      

 

 

 

To understand more about cash book please check out following links: –

Journal Proper | Subsidiary Books | Examples

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T.S. Grewals Double Entry Book Keeping - Question No 16 Chapter No 11 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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