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Adjustment Entries

Adjustment Entry # 1 Hyper Star Traders
Income Statement
Particular’s As of Dec Debit Amount
31, 2009 Credit Amount Rs.
Rs.
Bank Charges A/C Rs Rs
Interest
Sales on Loan A/C 150
924,000
Return Inwards 500
8,000
Net Sales 916,000
Due Bank Charges
150
A/C
Cost of Sales
Due Interest on loan
Opening Stock 120,000 500
A/C

Purchases 650 650
680,000
Return Outwards
Adjustment Entry to record the4,800
due payment not yet recorded in the bank books
Net Purchases 675,200
675,200
Total Stock available
Adjustment Entry # for
2 sale 795,200
Debit Amount
Particulars Credit Amount Rs.
Closing Stock Rs. 200,000
Net Cost of Sales 595,200
Accrued dividend Receivable A/C 2,000
Gross Profit 320,800
Dividend Income A/C 2,000
Operating Expenses
Adjustment Entry for the dividends accrued receivable on Dec 31,09
Salaries 48,000
Wages 45,200
Adjustment
Carriage out Entry # 3 3,600
Commission Debit Amount 2,000Amount Rs.
Particulars Credit
Rs.
Insurance Paid 2,800
House Rent 5,000
Bad Debts on Sundry Debtors A/C 5,000
Bank Charges 150
Interest on Loan 500
Sundry Debtors A/C 5,000
Bad Debts on Sundry Debtors 5,000
Written off Plant Value - wear& Tear 40,000
Recording the bad debts on sundry debtors (100,000 x 5 % = 5,000)
Total Operating Expenses 152,250

Adjustment Entry # 4
Debit Amount
Particulars Credit Amount Rs.
Rs.

House Rent Expense A/C 5,000
Operating Income
Interest Received
(800)
Dividend Income
(2,000)
Total Operating Income
(2,800)
149,450 320,800
Net income transfer to balance
171,350
sheet
Hyper Star Traders
Balance Sheet
As of Dec 31, 2009

Liabilities & Owner's Equity Assets

Current Liabilities Amount in Current Assets Amount in
Rs. Rs.

Bills Payable 20,000 Cash in Hand 4,000
Sundary Creditors 160,000 Bank Balance 36,000
Bank Charges/Interest Due 650 Sundary Debtors 100,00
0
Bad Debts 5,00
0
Net Sundary 95,00 95,000
Debtors 0
Bills Receivables 44,000
Dividend Receivable recorded (2,000)
Closing Stock 200,000

Total current Liabilities 180,650 Total current Assets 377,000

Owners Equity Fixed & Long Term Assets

Long Term Investment 60,000

Capital 280,000 Furniture 40,000
Drawing (Credited) 5,000 Plant 200,00
0
Net Capital 285,000 285,000 Wear & Tear of 40,00
plant 0
Net Plant Value 160,00 160,000
0
Net Retained Earning from P&L 171,350

Total Capital & Retained Earning 456,350 Total Fixed & Long Term 260,000
Assets

Total Liabilities & Owners Equity 637,000 Total Assets 637,000