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
|(i)||Accrued Interest A/c||Dr||2,500|
|To Interest Received A/c||2,500|
|(Being interest accrued but not received )|
|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