Accounting Worksheet Problems and Solutions

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Accounting Worksheet Problems and Solutions

Jadon & Co. is a manufacturer of various types of dyes for industrial use. Following is the unadjusted trial balance as on 30 June, 2018:

	Debit	Credit
Cash	20,000
Debtors	48,000
Opening Inventory	40,000
Prepaid insurance	16,000
IT Equipment	200,000
Allowance for depreciation – IT Equipment		40,000
Creditors		32,000
Capital		209,200
Drawings	24,000
Revenue		320,000
Discount given to customers	16,000
Purchases	160,000
Return and allowances		20,000
Carriage-in	23,200
Advertising expense	34,000
Payroll expense	40,000
	621,200	621,200

Additional information for adjustments:

1. Provide allowance for depreciation on IT Equipment $ 8,000.
2. Provide allowance for bad debts @ 10 {1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c} of ending balance of debtors.
3. Insurance expired $ 10,000.
4. Prepaid advertising $ 4,800.
5. Outstanding payroll $ 8,000.
6. Closing inventory on 30 June, 2018 $ 60,000.

Required:

You are required to produce ten column worksheet.

Solution

Particulars	Trial Balance	Adjustments	Adjusted T. B	Income Stat.	Balance Sheet
	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	20,000				20,000				20,000
Accounts receivable	48,000				48,000				48,000
Inventory	40,000				40,000		40,000
Prepaid insurance	16,000			10,000	6,000				6,000
IT Equipment	200,000				200,000				200,000
Allow for dep – IT Equip.		40,000		8,000		48,000				48,000
Creditors		32,000				32,000				32,000
Capital		209,200				209,200				209,200
Drawings	24,000				24,000				24,000
Sales Revenue		320,000				320,000		320,000
Sales Discounts	16,000				16,000		16,000
Purchases	160,000				160,000		160,000
Purchase returns		20,000				20,000		20,000
Carriage-in	23,200				23,200		23,200
Advertising expense	34,000			4,800	29,200		29,200
Payroll expense	40,000		8,000		48,000		48,000
Insurance expense			10,000		10,000		10,000
Depreciation expense			8,000		8,000		8,000
Payroll payable				8,000		8,000				8,000
Prepaid advertising			4,800		4,800				4,800
Bad debt expense			4,800		4,800		4,800
Allow. For bad debts				4,800		4,800				4,800
Closing inventory								60,000	60,000
Net income							60,800			60,800
	621,200	621,200	35,600	35,600	642,000	642,000	400,000	400,000	362,800	362,800