Financial statement with adjustments

S.n Adjustment Trading A/c P/L A/c Balance sheet

1 Closing stock Credit side Assets side
By Closing stock ×× ------ Closing stock ××

2 Wages outstanding Debit side Liabilities side

To Wages. ×× ------ Outstanding wages ××
(+) O/s. ××. ××
3 Salary outstanding Debit side Liabilities side
------ To Salary. ×× Outstanding salary ××
(+) O/s. ××. ××
5 Prepaid insurance Debit side Assets side
------ To Insurance ×× Prepaid Insurance ××
(-) prepaid. ×× ××
6 Commission earn but Credit side Assets side
not received ------ By Commission. ×× Accrued commission ××
(+) Accrued. ××
7 Depreciation on Debit side Assets side
machinery ------ To Depreciation on Machinery ××
machinery ×× (-) dep. ×× ××

8 Interest on capital Debit side Liabilities side

------ To Interest on capital Capital ××
(Capital × 5/100) ×× (+) IOC. ×× ××
9 Interest on drawings Credit side Liabilities side
------ By Interest on Capital ××
drawings ×× (+) IOD. ×× ××
10 Provision for bed debts Debit(+) / Credit(-) Assets side
To Bad debts. ×× Debtors ××
------ (+)FBD. ×× (-)FBD. ××
(Deb-fbd-np)×5/100 (-)New provision ××
(+)New provision ××
(-)Old provisin ×× ×
11 Provision for discount Debit side Assets side
on debtors ----- To Provision for Debtors ××
discount on debtors (-)FBD. ××
(Deb-fbd-np)×2/100 (-) New provision ××
(-) PFDOD. ××. ××

12 Provision for discount Credit side Liabilities side

on creditors ----- By Provision for Creditors ××
discount on creditors (+)PFDOC ×× ××
××
13 Private purchase Debit side Liabilities side
recorded in purchase To Purchase. ×× ----- Capital. ××
account (-) private (-) private
Purchase ××. ×× Purchase ×× ××
14 Interest on deposit Credit side Assets side
----- By Interest on Deposit ××
Deposit ×× (+) interest ×× ××
15 Interest on bank Credit side Liabilities side
overdraft ----- To Interest on bank Interest on bank
overdraft ×× overdraft ××

16 Commission received Credit side Liabilities side

in advance ----- To Commission ×× Advance commission ××
(+) Advance ××
17 Interest outstanding Debit side Liabilities side
----- To Interest on loan Outstanding interest on
outstanding. ×× loan ××
18 Wages paid for 11 Debit side Liabilities side
month (it means 1 m is To Wages. ×× ----- Outstanding wages ××
outstanding) (+) O/s 1m ××. ×× (01 month)
19 Salary paid for 11 Debit side Liabilities side
month (it means 1 m is ----- To Salary. ×× Outstanding salary ××
outstanding) (+) O/s 1m ××. ×× (01 month)
20 Goods lost my fire Debit side Debit side Assets side
4,000 insurance To Purchases ×× To Goods loss by fire Insurance claim 1000
company admit claim (+)loss by fire 4000 (4000-3000) 1000
for rupees 3,000.
21 Goods used by Debit side
proprietor To Purchases ×× ---- ----
(+) Drawing ××
22 Goods distributed as Debit side ----
free sample To Purchases ×× ----
(+) Free sample ××
23 Furniture purchase and Debit side Assets side
included in general ---- To General exp ×× Furniture. ××
expenses account. (-) furniture. ×× (+) addition. ××
24 Goods given as charity Debit side Liabilities side
To Purchases ×× ---- Capital. ××
(+) goods (-) goods
Drawing ×× Drawing ×× ××
25 Sign board included in Debit side Assets side
advertisement. ---- To advertisement ×× Sign board ××
(-) sign board ××
26 2/3 rent chargeable in Debit side Debit side
factory and 1/3 office. To Rent (2/3). ×× To Rent (1/3). ×× ----
27 Stationery withdraw Debit side Liabilities side
for personal use by ----- To stationery ×× To capital. **
proprietor (-) drawings ×× (-) drawings ××
28 Right of 14th of Debit side Assets side
advertisement ----- To advertisement Advertisement
expenses. expenses (1/4) expenses (3/4)

29 Manager Commission
10% on net profit after -----
charging such
Commission
30 Manager Commission
10% on net profit
before charging such
Commission