Show necessary entries to adjust the following on 31st December, 2017.
(i) Outstanding salaries Rs. 1,200
(ii) Outstanding rent Rs. 300
(iii) Prepaid insurance premium Rs. 450
(iv) Interest on investments accrued Rs. 400
(v) Bad debts written off Rs. 200

Sundry debtors as per trial balance as on 31^st March, 2016 is Rs. 10,000.
Adjustment: Write off bad debts amounting to Rs. 300.
Give adjusting entry and show how these appear in the final accounts as on 31^st March, 2016.

What is the need for preparing final accounts?

Explain how closing stock is treated in final accounts.

Explain the accounting treatment of bad debts, provision for doubtful debts and provision for discount on debtors.