8625adjusting Entries Practice

Q #1 Following adjustments are for adjusting entries.
a) Unpaid salaries Rs. 7,500

b) Outstanding Utility bills Rs. 650
c) Depreciation of office furniture at 10% office equipment 15% (Office furniture Rs. 35,
000 and office equipment Rs. 45,000)
d) Allocate allowances for uncollectible 2% on accounts receivable. (Accounts Receivable
Rs. 17,000)
e) Accrued mark-up on Notes Payable Rs. 150
f) Insurance expenses for the period Rs. 4,200 (Prepaid Insurance Rs. 8,000)
g) Prepaid rent Rs. 6,500 (Prepaid Rent Rs. 16,000)
h) advertising expenses Rs. 10,800 (Prepaid Advertising Rs. 19,000)
Instruction
-Adjusting entries at the end of the year on December 31, 1999
Q# 2 Pass the adjusting entries from the following data at the year ended on December 31, 1999.
i. Prepaid insurance account has a debit balance of Rs. 17,200 actual prepaid at the end is
Rs. 6,200
ii. Unpaid commission Rs. 3,560
iii. Accrued mark-up receivable on Notes Receivable Rs. 270
iv. Rent payable for the month Rs. 4,500
v. Outstanding electric expenses Rs. 2,850
vi. Supplies inventory account balance Rs. 13,500 at the end supplies consumed Rs. 11,200
vii. Advertising supplies Rs. 15,000 out of which advertising supplies consumed 9,950
viii. Sub-letting rent revenue due but yet not received Rs. 7,200
ix. Mark-up expenses on Notes Payable Rs. 55 not paid.
Q#3 Pass the necessary adjusting entries on June 30, (at the year ended) from the following
selected information:
(a) Unpaid wages 2,650
(b) Salaries expenses for the month payable Rs. 12,900
(c) Estimated allowances for uncollectible Rs. 750
(d) Depreciation on building Rs. 2,000 and on office furniture Rs. 1,700
(e) Mark-up accrued on Notes Receivable Rs. 260
(f) Insurance expenses for the month Rs. 2,750 (Prepaid insurance Rs. 6,000)
(g) Office supplies consumed Rs. 950 (Office supplies Rs. 2,000)
(h) Unearned services revenue earned Rs. 12,750
(i) Commission earned but yet not received Rs. 21,760
Q#4 Prepare adjusting entries from the following adjustments at the year ended on September 30.
i. Outstanding office rent and electric bill Rs. 7,000 and Rs. 1,200 respectively.
ii. Prepaid insurance Rs. 3,200 (Prepaid insurance account Rs. 9,600)
iii. Prepaid advertising Rs. 6,500 (Advertising Expenses Rs. 7,500)
iv. Prepaid shop rent Rs. 9,500 (Unexpired Shop Rent Rs. 16,000)
v. Accrued Mark-up on Notes Payable Rs. 1,750
vi. Allowances for uncollectible should be 2-1/2% on accounts receivable. (Accounts
receivable Rs. 28,000)
vii. Salaries unpaid Rs. 21,500
viii. Professional services earned and receivable Rs. 22,750
ix. Professional services earned and it was chargeable to unearned account Rs. 13,100
x. Depreciation 10% on Office Furniture, 12-1/2% on Office Equipment (Office furniture Rs.
68000, Office equipment Rs. 97,000)
QUESTION 5: - The trial balance of ZEESHAN at July 31, 2019, the end of the current fiscal year, and the
data needed to determine year-end adjustments are as follow:
ZEESHAN
Trial balance
July 31, 2019
Dr (Rs) Cr (Rs)
Cash 6,290
Laundry supplies 3,850
Prepaid insurance 2,400
Laundry equipment 81,600
Accumulated depreciation 52,000
Unearned Revenue 700
Accounts payable 3,950
Capital Stock 21,900
Retained Earnings 12,000
Dividend 16,600
Laundry revenue 66,900
Wages expense 15,900
Rent expense 14,400
Utilities expense 8,500
Administration expense 910
Income tax expense 7,000
157,450 157,450
1. Laundry supplies on hand at July 31 are Rs, 940.
2. Insurance premiums expired during the year are Rs. 1,500.
3. Depreciation of equipment during the year is Rs. 5,220.
4. Wages accrued but not paid at July 31 are Rs. 850.
5. Accrued Revenue Rs. 2,400
6. Unearned revenue at July 31 is Rs. 200.
Required:
a. Prepare adjusting entries
b. Prepare adjusting trial balance
Financial Accounting
Practice Questions of Financial Statement
The following is the pre-closing Trial Balance of Kama ran and Co. prepared on Dec, 31 2012
Name of Accounts Debit Credit
Cash 10,000
Merchandise Inventory (1.1.12) 8,000
Office Equipment 30,000

Purchases 52,000
Salaries Expense 5,500

Rent Expense 5,000
Office Supplies 500

Insurance Prepaid 1,200
Accounts Receivable 20,000

Sales Returns 500
Furniture 17,300
Kamran Drawings 5,000
Unearned Commission 5,000

Sales 75,000
Purchase Returns 500

Kamran Capital 60,000
Accumulated Dep. On Office equipment 2,500

Accounts payable 12,000
Total 155,000 155,000

Data for adjustments on December 31, 1990
1) Merchandise inventory was valued at Rs. 10,000.
2) Fee of Rs. 1,500 is still unearned.
3) Rent Accrued Rs. 1,000.
4) Office Supplies unused Rs. 200.
5) Insurance expired, Rs. 800.
6) Depreciation on Office Equipment was estimated at Rs. 2,500.
REQUIRED
a) Prepare Income Statement in classified report form for the year ended December 31, 2012.
b) Prepare Balance Sheet in classified account form as of December 31, 2012.

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Q #1 Following adjustments are for adjusting entries.

a) Unpaid salaries Rs. 7,500

Office Equipment 30,000

Salaries Expense 5,500

Office Supplies 500

Accounts Receivable 20,000

Unearned Commission 5,000

Purchase Returns 500

Accumulated Dep. On Office equipment 2,500

Total 155,000 155,000

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