The trial balance of Gayathri business on 2021.12.31 is as follows.Rs. ‘000’Details Debit CreditCash and cash equivalentsStock on 31.12.2021Bonus payment for sales employeesInsuranceTrade payableCapitalBank loan interest20% Bank loanElectricity chargeMotor vehicle repairOther expensesAccumulated depreciation on 2021.01.01Property, plant and equipment – cost on 2021.01.01Trade receivableOther administrative expensesProvision for doubtful debt on 2021.01.01Office rentTelephone chargeSalesCost of sales1504503007001006506501 22012 70080090030527010 0004008 7001 0003 02510015 97029 195 29 195Additional information:1. Details of accumulated depreciation of property, plant and equipment are as follows.Assets Cost Rs. ‘000’ Accumulateddepreciation Rs. ‘000’Motor vehicleOffice equipmentLand and building(Land cost Rs. 5 000)2 0001 0009 7006006251 80012 700 3 0252. In accordance with inventory records, cost value of stock on 31.12.2021 is Rs. 450 000. However, thegoods taken by Gayathri for her private need have not been recorded.3. Telephone charge not paid up to 31.12.2021 is Rs. 30 000.4. Property, plant and equipment are depreciated on straight line method. The details useful life time andresidual value are given below.Grade - 12 (2023) – 2023 FWC - 7 - Accounting- IAssets Useful life time Residual valueMotor vehicleOffice equipmentBuilding20 years10 years18 years---5. Other expenses include the following expenses.Fire loss Rs. 220 000Business fees Rs. 100 000Employee salary Rs. 400 0006. A new office equipment was purchased for Rs. 500 000 on 2021.07.01. This amount was erroneouslyrecorded in other administrative expenses. Life time of this equipment was estimated as 5 years andthere is no residual value.7. Rs. 100 000 should be written off from debtors and allowance for doubtful debt on 2021.12.31 shouldbe adjusted as 10% of closing trade receivable.8. Cash control account balance of the business on 2021.12.31 and bank statement balance on the samedate were different due to the following reasons.(a) Rs. 50 000 directly deposited by a debtor directly at bank was not recorded in the books.(b) Own life insurance premium of Gayathri paid from the business fund was not recorded in theaccounting books.(c) Bank overdraft interest Rs. 15 000 in bank statement was not recorded in the accounting booksup to 31.12.2021.Required,1. Profit or loss statement for the year ended 2021.12.312. Statement of financial position as at 2021.12.31

Cash control account balance of the business on 2021.12.31 and bank statement balance on the samedate were different due to the following reasons.(a) Rs. 50 000 directly deposited by a debtor directly at bank was not recorded in the books.(b) Own life insurance premium of Gayathri paid from the business fund was not recorded in theaccounting books.(c) Bank overdraft interest Rs. 15 000 in bank statement was not recorded in the accounting booksup to 31.12.2021.Required,1. Profit or loss statement for the year ended 2021.12.312. Statement of financial position as at 2021.12.31

From the trial balance of Ajith and the adjustments given below, prepare tradin and profit and loss A/c for the year ended 31st March 2022 and the balance shee as on that date. Debit Credit Particulars Opening stock 15,000 Capital 25,000 Furniture and fixtures 30,000 Returns outward 1,000 Purchases 40,000 Bills payable 10,000 Sales returns 2,000 Sales 1,24,000 Carriage inwards 10,000 Provision for doubtful debts 500 Office rent 23,000 Sundry debtors 20,100 Bank balance 19,600 Bad debts 900 Provision for discount on debtors 100 1,60,600 1,60,600 (a) Stock at the end of the year was ₹8,000 (b) Further bad debts amounted to ₹ 100 (c) Create 2% provision for doubtful debts on sundry debtors (d) Create 1% provision for discount on sundry debtors

Question 4 The unadjusted trial balance of Go Regional Ltd. as at 31 March 20X5 is as follows: Debit $’000 Credit $’000 400,000 Ordinary shares n 5,000 Accumulated depreciation : Building n 400 Accumulated depreciation : Office equipment n 180 Building n 10,000 Cash at bank n 518 Cost of goods sold n 19,508 Bond (repayable in September 20X8) 3,600 Bond interest expenses 120 General and administrative expenses n 1,582 Office equipment, at cost n 630 Allowance for impairment of trade receivables n 63 Tax payable n 10 Sales n 23,790 Selling expenses n 758 Inventories n 5,798 Other creditors and accruals n 240 Trade payables n 3,861 Trade receivables n 4,200 Retained profits (31 March 20X4) n 4,954 42,606 42,606 Additional information: (i) The company issued 40,000 ordinary shares at an issue price of $10 each in January 20X5. This share issue has not been recorded in the company’s books. (ii) The company made a ‘1-for-4’ rights issue at a price of $14 per share on 28 February 20X5 (market price was $15.20) for additional working capital. No entry has been made in the books in respect of this issue. (iii) Bond interest rate is 5% per annum, payable annually on 1 April. (iv) On 15 March 20X5, the company carried out a share buy-back exercise and purchased 50,000 ordinary shares in the open market at the price of $12 per share. These shares are to be held as treasury shares. This transaction has not been recorded. (v) Tax liability for the current year is estimated at $400,000. The Comptroller of Income Tax confirmed that the tax liability for the year ended 31 March 20X4 has been fully settled. Any over or under-provision of income tax should be adjusted in the current financial year. The accounting entries for the adjustment and current year tax had not been made. (vi) The directors proposed a final net dividend of $0.30 per ordinary share. No accounting entry was made as at year-end. Required: Prepare the following for Go Regional Ltd: (a) Adjusting journal entries to record the above transactions. Narrations are not required.

The following trial balance was extracted from the books of Kamau’s a soletrader as at 31/12/2017.DEBITSHSCREDITSHSFurniture 12,000Motor Vehicle 20,000Bank loan 20,000Debtors 39,000Stock 1/1/2017 14,000Sales 96,000Discount Allowed 3,500Advertising expenses 1,800Insurance expenses 4,000Return Inwards 6,000Salaries Expenses 2,800Electricity expenses 2,000Purchases 38,000Rent Income 12,000Carriage inwards 5,000Return outwards 3,000Discount received 4,500Dividend income 7,000Creditors 16,000Drawings 4,000Cash 15,000Capital 8,600167,100 167,100Additional Information:Value of closing stock shs.5,000Bad debts to be written off shs.1,500Prepaid insurance expenses was shs.2,500Unpaid electricity bill as at 31/12/2017 was shs.1,000.Rent income received in advance was shs.4,000Dividend income receivable was shs.3,000Required:i) Prepare a Trading and profit and loss account for the year ended31/12/2017

15) The following is the trial balance of a trader as on 31st Chaitra, 2075: [4+6+5=15]Particulars Debit (Rs) Particulars Credit (Rs)Opening stock 1,40,000 Sales 3,00,000Salaries 51,000 Capital 4,00,000Drawing 50,000 12% Loan 50,000Building 2,00,000 Commission 3,000Furniture 30,000 Creditors 50,00010% Investment 50,000 Bills payable 134,000Purchases 2,50,000 Provision for bad debt 2,500Interest on loan 3,000    Wages 20,000    Insurance 5,000    Debtors 1,00,000    Cash balance 10,500    Bills receivable 30,000      9,39,500   9,39,500Additional information:a) Closing stock Rs. 1,50,000.b) Outstanding expenses: Wages Rs. 2,000, Salaries Rs. 9,000.c) Write off bad debts Rs. 10,000.d) Create provision for bad debts @ 5% on debtors.e) Insurance prepaid Rs. 2,500.f) Depreciate furniture by 10%.Required:Trading accountBalance sheetProfit and loss account