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There is some error in the question as from the given balance if we prepare a trial balance then the balances would not match, There is a difference of Rs 20,500/-.
Trial balance :
Even if we adjust all the adjustments, there would be a difference of Rs 20,500/- as all the adjustments would have the double effect.
Kindly provide the correct question so that we can help you at the earliest.
Regards
There is some error in the question as from the given balance if we prepare a trial balance then the balances would not match, There is a difference of Rs 20,500/-.
Trial balance :
| Trial Balance | |||
| Dr. | Cr. | ||
| Particulars | Amount | Particulars | Amount |
| Stock (01.4.2014) | 45,000 | Capital | 120,000 |
| Furniture | 15,000 | Sales | 435,000 |
| Rent | 5,000 | Purchase Return | 4,000 |
| Drawings | 21,000 | Provision for Doubtful Debt | 800 |
| Plant and Machinery | 24,000 | Sundry Creditors | 19,000 |
| Purchases | 295,000 | Miscellaneous Receipts | 1,200 |
| Insurance | 1,500 | ||
| Sales Return | 7,000 | ||
| Trade Expenses | 2,000 | ||
| Salaries | 24,000 | ||
| Bad Debts | 1,000 | ||
| Sundry Debtors | 40,000 | ||
| Establishment Expense | 8,000 | ||
| Patent | 4,800 | ||
| Wages | 4,000 | ||
| 12% Investments | 50,000 | ||
| Cash | 12,200 | ||
| 559,500 | 580,000 | ||
Even if we adjust all the adjustments, there would be a difference of Rs 20,500/- as all the adjustments would have the double effect.
Kindly provide the correct question so that we can help you at the earliest.
Regards