A prepayment of insurance premium will appear in ______.

(a)

The trading account on the debit side

(b)

The profit and loss account on the credit side

(c)

The balance sheet on the assets side

(d)

The balance sheet on the liabilities side

If there is no existing provision for doubtful debts, provision created for doubtful debts is ______.

(a)

Debited to bad debts account

(b)

Debited to sundry debtors account

(c)

Credited to bad debts account

(d)

Debited to profit and loss account

Outstanding expense account is a representative ______ account.

(a)

Personal

(b)

Real

(c)

Both 'a' and 'b'

(d)

None of these

______ is treated asbusiness expense.

(a)

Interest on capital

(b)

Interest on drawings

(c)

Both 'a' and 'b"

(d)

None of these

Provision for discount on debtor is made on the basis of past experience at an estimated rate on _____

(a)

Sundry creditors

(b)

Sundry debtors

(c)

Capital

(d)

Net Profit

The preparation of ______ is the last step in the accounting cycle.

(a)

Trading account

(b)

Profit and Loss account

(c)

Balance sheet

(d)

Final account

Prepaid insurance is _______

(a)

an asset

(b)

a liability

(c)

an income

(d)

an expense

Trial balance as on 31.12.2017. Shows sundry debtors Rs.55,000. As per given adjustments, if Rs. 5,000 is to be written off as bad debts, the provision for bad and doubtful debts at 2% will be Rs.________.

(a)

1,000

(b)

1,100

(c)

1,200

(d)

1,300

The decrease in book value of fixed assets due to usage or passage of time is called_________.

(a)

Bad debts 

(b)

Depreciation

(c)

Closing stock

(d)

Capital

 Wages outstanding is_________.

(a)

an asset 

(b)

a liability

(c)

an income

(d)

an expense 

What is outstanding expense?

What are accrued incomes?

What is Interest on loan?

Give adjusting entry for depreciation at 10% p.a. on machinery of Rs.25,000.

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

Explain the concept of Matching Principle.

What is Credit balance?

Pass necessary Adjusting entries for the following adjustments:
a) Interest on loan outstanding Rs.5,000
b) Depreciation @ 5% on furniture Rs.50,000
c) Write off bad and doubtful debts Rs.3,000
d) Provide provision for bad and doubtful debts @ 5% on sundry debtors Rs.4,00,000
f) Provide provision for discount on creditors @ 2% on sundry creditors Rs.3,50,000

Abstracts from the trial balance as on 31^st March, 2016:

Particulars	Debit Rs.
Sundry debtors	52,000
Bad debts	1,000

Adjustments:
(i) Additional bad debts Rs. 2,000
(ii) Create 5% provision for bad and doubtful debts
You are required to pass necessary adjusting entries and show how these items will appear in final accounts.

Trial balance of Anuradha agencies as on 31-03-2012.

Debit balances	Amount Rs.	Credit balances	Amount Rs.
Drawings	1,800	Capital	80,000
Buildings	15,000	General reserve	20,000
Furniture & Fittings	7,500	Loan from Hari @ 6%	15,000
Computer	25,000	Sales	1,00,000
Interest on loan	900	Commission received	7,500
Loose tools	6,100	Sundry creditors	10,000
Purchases	75,000
Stock on 1-4-2011	25,000
General expenses	15,000
Freight inward	2,000
Freight outward	1,000
Sundry debtors	28,000
Bank	20,200
Goodwill	10,000
	2,32,500		2,32,500

Adjustments:
(i) Closing stock is Rs.32,000
(ii) Depreciate computer @ 10%; buildings @5%; furniture and fittings @ 10%
(iii) Provide for bad and doubtful debts @ 5% and for-discount on debtors @ 2%
(iv) Provide interest on drawings @ 6% and on capital @ 8% 
Prepare final accounts for the said period after giving effect to the adjustments.