Question No 10 Chapter No 20 – D.K Goal 11 Class

Question No 10 Chapter No 20

10.Give Journal Entries for the following adjustments in final accounts:1. Extract of Trial Balance as on 31st March, 2019

Particulars	Debit	Credit
Sundry debtors	6,60,000
Bad debts	15,000
Provision for doubtful debts		40,000

Additional Information:
a Additional Bad Debts 20,000.
b Maintain the provision for doubtful debts @ 5% on debtors.
2. Goods costing 20,000 were distributed among staff members as free of cost. These goods were purchased paying IGST @ 12%.
3. Two month’s rent @ 15,000 per month is outstanding. Rent is subject to levy of 12% IGST.
4. Included in general expenses is annual Insurance Premium of 10,000 paid for the year ending 30th June, 2019. IGST is levied @ 12%.
5. Accrued commission 5,000. IGST is levied @ 12%.

The solution of Question No 10 Chapter No 20: –

In the Books of Deepti Walia
Date	Particulars		L.F.	Debit	Credit
1	Bad debts A/c	Dr.		20,000
	To Debtors A/c				20,000
	(Being further bad debts)
	Provision for Bad debts A/c	Dr.		35,000
	To Bad Debts A/c				35,000
	(Being bad debts adjusted against provision )
	Profit and Loss A/c	Dr.		27,000
	To Provision for Bad debts A/c				27,000
	(Being net amount charged to P/L A/c)
2	Staff welfare expenses A/c	Dr.		22,440
	To Purchases A/c				20,000
	To Input IGST A/c				2,400
	(Being goods distributed to staff as free samples.)
3	Rent A/c	Dr.		30,000
	Input IGST A/c	Dr.		3,600
	To outstanding rent A/c				33,600
	(Being outstanding rent)
4	Prepaid insurance A/c	Dr.		10,000
	To Insurance A/c				10,000
	(Being insurance premium paid in advance )
5	Accrued Commission A/c	Dr.		5,600
	To Commission A/c				5,000
	To Output IGST A/c				600
	(Being commission earned but not received)

Working note:

Calculation of bad debts to be transferred to Statement of Profit and Loss:
Particular		Amount
Bad debts		15,000
Add: further bad debts		20,000
Add: New provision of bad debts		32,000
Less: Old provision of bad debts		40,000
Bad debts transferred to Statement of Profit and Loss		27,000
Where
New provision = 6, 60, 000– 20, 000 × 5%		32,000

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Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

• Chapter 1 Evolution of Accounting & Basic Accounting Terms
• Chapter 2 Accounting Equations
• Chapter 3 Meaning and Objectives of Accounting
• Chapter 4 Double Entry System
• Chapter 5 Books of Original Entry – Journal 
• Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
• Chapter 7 Books of Original Entry – Cash Book (Coming soon)
• Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
• Chapter 9 Ledger (Coming soon)
• Chapter 10 Trial Balance and Errors (Coming soon)
• Chapter 11 Bank Reconciliation Statement (Coming soon)
• Chapter 12 Depreciation (Coming soon)
• Chapter 13 Bills of Exchange (Coming soon)
• Chapter 14 Generally Accepted Accounting Principles(GAAP) 
• Chapter 15 Bases of Accounting
• Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
• Chapter 17 Capital and Revenue 
• Chapter 18 Provisions and Reserves 
• Chapter 19 Final Accounts (Coming soon)
• Chapter 20 Final Accounts – With Adjustments (Coming soon)
• Chapter 21 Errors and their Rectification (Coming soon)
• Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
• Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
• Chapter 24 Computerised Accounting System (Coming soon)
• Chapter 25 Introduction to Accounting Information System (Coming soon)

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