Prepared by - Manoj Sir

Chapter -7

(ADJUSTMENT VOUCHER TYPES EXAMPLES)

 Journal (F7)
If any depreciation charges on Assets or Any adjustment Entry, which is related to assets, expenses,
debtor or creditor etc... Comes under this voucher.

Example-1

Depreciation charge 10% on machinery (Machinery cost 2, 00,000) / any other Depreciation

Depreciation on machinery A/c Dr.

Machinery A/c Cr

Note – Assets value is reduce (2, 00,000 – 20,000 = 1, 80,000) it show in Balance sheet but we
pass entry only 10% Amount = 20,000 and do same entry any other Assets (Deprecation on
machinery comes under – Indirect Expenses Ledger)

Example-2

Outstanding Salary / Outstanding rent / Wages is Due

Salary A/c Dr.

O/s Salary Cr

Note – Outstanding Salary or any other O/S Expenses comes under (Current Liability group).
Outstanding means company is liable to pay pending Expense amount.

Example-3

Prepaid Salary / Prepaid rent / Advance Wages (or) Wages Include a sum of Rs 2000

Prepaid Salary Dr.

Salary Cr.

Note – Prepaid Expenses Comes under (Current Assets group). Prepaid Means Company paid
Expenses in advance.

Example-4

Interest on capital @ 10% (Capital 5, 00,000)

Prepared by - Manoj Sir

Interest on capital A/c Dr.

Capital Cr.
Note – (Interest on capital means Available capital is increase because of interest Amount – interest
on capital comes under (Indirect Income Group))

Example-5

Provision on debtor @ 5% / Provision on doubtful debts to Debtor @ 5% (Debtor = 50000)

Provision on debtor A/c Dr.

Debtor A/c Cr.

Note – (Debtor Amount is decrease while Company give discount on debtor or Provision on
debtor – Provision on debtor comes under (Indirect Expenses group))

Example-6

Sales tax Rs 20,000 (Any kind of charges of Tax)

Sales Tax Dr.

Sales Cr.

Sales Tax comes under (Indirect Expenses)

Example-7

Closing Stock Ledger Amount fill with Opening Stock ledger (Ledger-alter)

(Click here to show video tutorial)

Prepared by - Manoj Sir

ADJUSTMENTS (TALLY) Practical

Q.1 Create Book of Mr. Radhey Shyam and Prepared P&L and the Balance sheet and trial balance of
the following transaction after adjustment.
LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)
Cash 540 Building A/c 30,000
cash in bank 2,630 Freehold A/c 10,000
Purchase A/c 40,675 Machinery A/c 20,000
Sales A/c 98,780 Patents A/c 7500
Return Inward A/c 680 Salaries A/c 15,000
Wages A/c 10,480 Insurance A/c 600
Fuel & Power A/c 4,730 Drawing A/c 5,245
Carriage Outward 3,200 Capital A/c 71,000
Carriage Inward 2,040 Sundry Debtors A/c 14,500
stock-in-hand 5,760 Sundry Creditors A/c 6,300
General expenses 3,000 Return outward 500

Take into accounts with following adjustment.

(a) Closing stock in Valued of Rs. 6800.
(b) Deprecation on Machine, Patents is 10% 20%.
(c) Outstanding Salaries Rs. 1500.
(d) Prepaid Insurance Rs.1500.
(e) Wages include a sum of Rs. 2000 which will be deduct.
(f) Reserve for Bad debts 5% on debtors.(Indirect Expenses).

Net Profit :-17690 Balance Sheet:- 91,245 Trial Balance :-1,78,980

Q.2 Form the following Trial Balance of Shri Gupta, Prepare P&L and Balance Sheet.
LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)
Capital 4,00,000 Rent 40,000
Drawings 50,000 Postage 25,000
Opening Stock 75,000 Loan (Cr.) 3,00,000
Purchase 4,20,000 Interest Given 20,000
Sundry Creditors 75,000 Furniture 3,50,000
Sundry Debtors 1,20,000 Motor Vehicles 1,00,000
Sales 8,10,000 Brand 60,000
Discount Given 16,000 Cash at bank 1,50,000
Discount Recd 28,000 Cash 63,000
Commission Given 12,000 Freight Inward 20,000
Purchase Return 20,000 Salaries 1,20,000
Sales Return 16,000 Direct income 10,000
Commission Received. 14,000
Prepared by - Manoj Sir

Other Information :
(1) Closing stock Rs. 1,70,000
(2) Sales Tax Rs.50,000
(3) Depreciation Furniture, Brand Name, Motor Vehicles 10% 20% 20% p.a.
(4) Salaries outstanding Rs. 12000, Salaries paid in advance Rs. 10000

Net Profit :- 2,19,000 Balance Sheet :- 9,56,000 Trial Balance :-17,19,000

Q.3 From the following Trial Balance of Megha & Co. Trial Balance, Trading & profit and Loss accounts
for the year ended on 31st March 2017 Balance Sheet as on the data.
LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)
Capital 10,000 Manufacture Expenses 800
Creditors 1,200 Trade Expenses 700
Return Outwards 500 Bad Debts 200
Sales 16,400 Carriage Inwards 150
Bills payable 500 Return Inwards 400
Plant & machinery 4,000 Bank 1,000
Debtors 2,400 Repairs 50
Drawings 1,000 Opening Stock 2,000
Purchase 10,500 Rent 400
Wages 5,000
Other Information :
1. Depreciation on Plant & Machinery Rs. 400.
2. interest on Capital 5% and Outstanding Repairs Rs. 40.
3. Closing stock will be values Rs. 1450.

Net Loss: 2,790 Balance Sheet :-11,240 Trial Balance :-29,140

Q.4 From the following Trial balance of M/s Amar & Co. Trial balance , Trading & Profit & Loss
Accounts for the year ended on 31st March 2017 Balance Sheet as on the data.
LEDGER NAME AMOUNT (Rs.) LEDGER NAME AMOUNT (Rs.)
Capital 80,000 Discount 200
Drawing 6,000 Bad Debts 1,600
Opening stock 45,000 Provisioning for bad debts 900
Purchase 2,60,000 Creditors 20,000
Sales 3,10,000 Cash 5,200
Furniture 10,000 Bank 5,800
Sundry Debtors 40,000 Goodwill 20,000
Freight 4,600 Commission Received 13,00
Trade expenses 500 Advertising Expenses 5,000
Salaries 5,500 Insurance Premium 400
Rent 2400
Prepared by - Manoj Sir

Other information :

1) Closing stock Rs.53000

2) Salaries have been only for 11 months (outstanding only for one month)
3) Prepaid insurance Rs.100.
4) Prepaid commission Rs. 122.
5) Reserve for bad debts is to brought up to 3% sundry debtors.
6) Furniture is Depreciated @ 10% p.a.
7) Prepaid Advertising 75%.

Net Profit:- 39,472 Balance sheet :-1,35,772. Trial balance :- 4,13,722