Question No 18 Chapter No 18

Question No 18 Chapter No 18

Withdrawal of goods for personal use

18. The following balances have been extracted from the trial balance of Rahul Dev As on 31st March 2018

Ledger Account(Dr. Rs)(Cr. Rs)
Purchases66,000
Tools and Implements34,000
Wages18,000

Adjustments
Materials worth Rs 6,000 and wages Rs 4,000 were used in marking Tools and implements for the business. Show the adjustment entry and its treatment in the financial statement

 

The solution of Question No 18 Chapter No 18:-

Adjustment entries
DateParticulars
L.F.DebitCredit
 Tools and Implements A/cDr. 10,000 
 To Purchases A/c   6,000
 To Wages A/c   4,000
 (Being material and wages used for tools and implement.)   
     

 

Trading Account
Particular
AmountParticular
Amount
To Purchases A/c66,000    
Less: tools and Imp.6,00060,000   
To Wages A/c18,000    
Less: tools and Imp.4,00014,000   
    

 

Balance Sheet
Labilities
AmountAssets
Amount
   Tools and Imp. A/c34,000 
   Add: addition during year10,00044,000
      
    

 

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: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

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