Account

Cash
Account Receivable
Inventry Opening
Supples
Prepaid Insuranc
Capital
Account Payable
Equipment
Sales
Sales Return
Purchase
Purchase Disc
Carriage In
Salary Expense
Rent Income
Advertising
Intertest Expense
Allowance for Bad Debt
Salary Payable
Allowance for Depreciation
Supplies Exp
Baddebt Expens
Depreciation Exp
Insurance Exp
Un Earned Rent
Inventory Closing

Trial
Dr
Cr
3,500
4,430
6,270
800
1,050
14,000
7,000
12,000
40,000
400
28000
700
1,200
6,500
3,000
600
250
300

Adjustment
Dr
Cr

500
250

500
1,200

143
500
1,200
500
143
1,200
250
1,200

65,000

65,000

3,793

3,793

65,000

65,000

3,793

3,793

Adjusted Trial
Dr
Cr
3,500
4,430
6,270
300
800
14,000
7,000
12,000
40,000
400
28,000
700
1,200
7,000
1,800
600
250
443
500
1,200
500
143
1,200
250
1,200
66,843
66,843

66,843
66,843

PnL
Dr

Cr

Balance Sheet
Dr
Cr
3,500
4,430

6,270
300
800
14,000
7,000
12,000
40,000
400
28,000
700
1,200
7,000
1,800
600
250
443
500
1,200
500
143
1,200
250
1,200
45,813
987
46,800

4,300
46,800

4,300
25,330

46,800

25,330

24,343
987
25,330

Page No. 69
Account
Cash in hand
Cash at Bank
Accounts Receivable
Furniture
Inventory Op
Purchases
Sales Discrount
Transportaion
Salaries
Rent and Taxex
Drawing
Allowance for Baddebt
Insurance Exp
Purchase Return
Interest Income
Sales
Account Payable
Capital
Advertising Payable
Loan Payable
Depreciation Exp
Allowance for Dep
Prepaid Insurance
Bad Debt Expense
Rent Payable
Commision Income
Commission Receivable

Trial
Dr
Cr
12,000
8,000
20,000
15,000
11,000
60,000
1,000
1,500
10,400
4,500
8700
200
1,200
2,500
1,600
80,000
14,500
32,100
800
22,000

1,600
800
700

1,000
1,000
700
800
1,600
900
900

Adjusted Trial
Dr
Cr
12,000
8,000
20,000
15,000
11,000
60,000
1,000
1,500
10,400
6,100
8700
600
500
2,500
1,600
80,000
14,500
32,100
800
22,000
1,000
1,000
700
800
1,600
900
900

153,500

153,500

5,000

5,000

157,600

157,600

153,500

153,500

5,000

5,000

157,600

157,600

Sales
Sales Disc
Net Sales

80,000
(1,000)
79,000

Less: COGS
Opening Inventory
Add Purchase
Less Purchase Return
Add Transportation
Stock Available
Less Closing Inventory

Adjustment
Dr
Cr

11,000
60,000
(2,500)
1,500
70,000
(15,000)

COGS

55,000

Gross Profit

24,000

PnL
Dr

Cr

Balance Sheet
Dr
Cr
12,000
8,000
20,000
15,000

11,000
60,000
1,000
1,500
10,400
6,100
8700
600
500
2,500
1,600
80,000
14,500
32,100
800
22,000
1,000
1,000
700
800
1,600
900

92,300
7,700
100,000

15,000
100,000

900
15,000
80,300

100,000

80,300

72,600
7,700
80,300

Pg No. 118
Ending EnventoryCost by Gross Profit
question:
1/1/2011 Inventory

20,000

Avg Gross Profit Rate

30% of Net Sale

Net Purchase
Net Sales

Openign Inventory
Purchase
Purchase Return
Transportation

80,000
110,000

Net Purchase
COGS

Beg Inventory
Net Purchase

20,000
80,000

Total Inventory

100,000

Sale
Sales Return
Sales Disc
Net Sales

COSG:
Net Sale
Gross Profit
Ending Inventory

110,000
33,000

Gross Profit
77,000
23,000

Ending Inventory

Openign Inventory

225,000

Purchase Return
Transportation

650,000
(25,000)
10,000

Net Purchase

860,000

Sales Return
Sales Disc
Net Sales

830,000
(18,000)
(12,000)
800,000

Gross Profit

(200,000)

Ending Inventory

600,000

260,000

Q No. 4 Page No. 119

Inventory
Inventory
Purchase During the period
Purchase discount
Purchase Return
Gross Sales
Sales Return
Sales Discount

ANS

Cost
Retail Price
100,000 140,000
340,000 460,000
8,000
12,000
490,000
15,000
25,000

COGS
Ending Inv at Retail

Cost Price Retail Price

Inventory
100,000
140,000
Purchase During the period
340,000
460,000
Purchase discount
8,000
Purchase Return
12,000
Available for Sale

420,000

600,000
450,000

Ending Inv at Retail

150,000
70%
105,000