Solve this: - Accountancy - Depreciation

Question

Solve this:

Neha Chopra · Accepted Answer

Dear Student

You have posted a full project in this thread, I have prepared
journal entries as well as adjustment entries here, I request you
to kindly prepare Trial balance and final accounts as required from
the below journal entries as you just have to post these entries
into ledgers and trial balance
In case of any problem or query, please get back to us so that we
can help you at the earliest in preparing the final
accounts

Journal in the books
of M/s Fancy Look and Bros

Date
Particulars

Debit
Credit

01-04-12
Cash
A/c
Dr
500,000

To Capital
A/c

500,000

(Being business
started with capital)

01-05-12
Shop
A/c
Dr
350,000

To Cash
A/c

350,000

(Being shop
purchased)

01-08-12
Bank
A/c
Dr
450,000

To Cash
A/c

450,000

(Being bank account
opened and cash deposited into bank)

01-10-12
Bank
A/c
Dr
450,000

To Bank Loan
A/c

450,000

(Being bank loan
credited into
bank)

01-10-12
Computer
A/c
Dr
40,000

To bank
A/c

40,000

(Being computer
purchased)

31-12-12
Furniture
A/c
Dr
200,000

To Bank
A/c

200,000

(Being furniture
purchased)

31-12-12
Gift Expenses
A/c
Dr
10,000

To Bank
A/c

10,000

(Being
diwali
gift to
employees)

31-03-12
Purchases
A/c
Dr
1,680,000

To Bank
A/c

1,680,000

(Being purchases
made)

31-03-12
Bank
A/c
Dr
2,040,000

To Sales
A/c

2,040,000

(Being sales
made)

31-03-12
Carriage Inward
A/c
Dr
10,000

To Bank
A/c

10,000

(Being carriage
expenses paid)

31-03-12
Salary To Manager
A/c
Dr
120,000

Salary to Staff
A/c
Dr
100,000

Telephone
Expenses
Dr
18,200

Electricity
Expenses
Dr
15,000

Packing
Expenses
Dr
48,000

Printing and
Stationery
Dr
6,000

Accounting
Expenses
Dr
60,000

Advertising
Dr
45,000

Bank
Charges
Dr
15,000

Insurance
Premium
Dr
5,000

Staff
Wellfare
Dr
16,000

Conveyance
Expenses
Dr
5,750

To Bank
A/c

453,950

(Being Expenses for
full year passed in single entry)

31-03-12
Drawings
A/c
Dr
60,000

To Bank
A/c

60,000

(Being Drawings made
by gaurav
and
sourabh
@ 3,000
and 2,000 per month)

Adjustment entries
:

Journal in the books
of M/s Fancy Look and Bros

Date
Particulars

Debit
Credit

31-03-12
Depreciation
A/c
Dr
9,000

To Computer A/c
(40,000 x 20% x 6/12)

4,000

To Furniture A/c
(2,00,000 x 10% x 3/12)

5,000

(Being depreciation
charged)

Telephone Expenses
A/c
Dr
6,800

To Outstanding
Telephone Expenses

6,800

(Being Telephone
expenses are to be paid)

Interest on Loan A/c
(4,50,000 x 5% x 6/12)
Dr
11,250

To Bank
Loan

11,250

(Being Interest on
loan unpaid)

Commission A/c
(20,40,000 x 5%)
Dr
102,000

To Commision Payable
A/c

102,000

(Being Commission
payable)

Interest on Capital
A/c (5,00,000 x 10%)
Dr
50,000

To Capital
A/c

50,000

(Being Interest on
capital provided at 10%)

Capital
A/c
Dr
3,000

To Interest on
Drawings A/c (60,000 x 10% x 6/12)

3,000

(Being Interest on
drawings charged @10% for 6 months assuming drawings in each month
is done in the middle of the month)

Please note that
Managers commission entry is remaining to be made as net profit is
not calculated yet

Hope this helps
Keep posting
Regards

Journal in the books of M/s Fancy Look and Bros.
Date	Particulars		Debit	Credit
01-04-12	Cash A/c	Dr.	500,000
	To Capital A/c			500,000
	(Being business started with capital)

01-05-12	Shop A/c	Dr.	350,000
	To Cash A/c			350,000
	(Being shop purchased)

01-08-12	Bank A/c	Dr.	450,000
	To Cash A/c			450,000
	(Being bank account opened and cash deposited into bank)

01-10-12	Bank A/c	Dr.	450,000
	To Bank Loan A/c			450,000
	(Being bank loan credited into bank)

01-10-12	Computer A/c	Dr.	40,000
	To bank A/c			40,000
	(Being computer purchased)

31-12-12	Furniture A/c	Dr.	200,000
	To Bank A/c			200,000
	(Being furniture purchased)

31-12-12	Gift Expenses A/c	Dr.	10,000
	To Bank A/c			10,000
	(Being diwali gift to employees)

31-03-12	Purchases A/c	Dr.	1,680,000
	To Bank A/c			1,680,000
	(Being purchases made)

31-03-12	Bank A/c	Dr.	2,040,000
	To Sales A/c			2,040,000
	(Being sales made)

31-03-12	Carriage Inward A/c	Dr.	10,000
	To Bank A/c			10,000
	(Being carriage expenses paid)

31-03-12	Salary To Manager A/c	Dr.	120,000
	Salary to Staff A/c	Dr.	100,000
	Telephone Expenses	Dr.	18,200
	Electricity Expenses	Dr.	15,000
	Packing Expenses	Dr.	48,000
	Printing and Stationery	Dr.	6,000
	Accounting Expenses	Dr.	60,000
	Advertising	Dr.	45,000
	Bank Charges	Dr.	15,000
	Insurance Premium	Dr.	5,000
	Staff Wellfare	Dr.	16,000
	Conveyance Expenses	Dr.	5,750
	To Bank A/c			453,950
	(Being Expenses for full year passed in single entry)

31-03-12	Drawings A/c	Dr.	60,000
	To Bank A/c			60,000
	(Being Drawings made by gaurav and sourabh @ 3,000 and 2,000 per month)