AU Corporate Accounting Revaluation of Assets and Liabilities Excel Worksheet

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Academic Year 2020 -2021 Semester - II BAAC2202 – Corporate Accounting 1 Assignment A. Abdulla and Bader are partners sharing profit and losses in the ratio 3:2. From the following Trial Balance and adjustments; prepare the following: a) Adjusting Entries (2.5 marks) b) Income Statement for the year ended March 31, 2019 (2.5) c) Profit and Loss Appropriation Account (3.0) d) Partners’ Capital Accounts (2.5) e) Balance Sheet (2.5) Trial Balance as on 31st March, 2019 Debit Balances Opening stock Purchases Debtors Wages Salaries Land and Building Plant and Machinery Furniture Advertisement Bills Receivable Insurance Drawings - Saleh Ammar Cash in hand Rent Power and fuel Amt. Credit Balances 20,000 Capital A/cs -Abdulla Bader 30,000 Sales 12,000 Sundry Creditors 5,000 Bills payable 10,000 Discount 30,000 Outstanding Rent 25,000 16,000 6,000 8,000 2,000 2,000 3,000 5,500 10,000 3,000 1,87,500 Adjustments: 1) Stock on hand on 31st March, 2019 was at OMR 35,000. 2) Provision for doubtful debts at 5% on debtors. 3) Depreciate Land and Building at 5% and Machinery at 10%. 4) Outstanding expenses were wages OMR 2,000 and salary OMR 1,000. 5) Prepaid advertising is OMR 1,200. 6) The following were agreed upon: a) Both partners are entitled to a salary of OMR 500 each per month. Amt. 40,000 30,000 70,000 21,000 20,000 5,000 1,500 1,87,500 b) Interest on drawing is 5% p. a. c) Interest on capital is 8% p.a. B. Admission of a Partner (2 marks) 1) Explain the following adjustments required at the time of admission of a partner: a. Revaluation of Assets and Liabilities of the firm. b. Adjustment of Accumulated Reserves and Profits /Losses. 2) Why is there admission of a new partner in a partnership? From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date.
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Part A : Adjusting entries
Particulars
Closing Stock a/c
Dr.
To Trading A/c
(Being the closing stock recognised)
Profit and Loss a/c
Dr.
To Provision for doubtful debts
(Being the provision for doubtful debts created)
Depreciation a/c
Dr.
To Land and Budiling a/c
To Plant & Machinery a/c
(Being the depreciation provided for)
Profit and Loss a/c
Dr.
To Depreciation a/c
(Being the depreciation transferred to P&L)
Salaries a/c
Dr.
Wages a/c
Dr.
To Outstanding salaries a/c
To Outstanding wages a/c
(Being the unpaid salaries and wages expenses recognized)
Prepaid Advertisement
Dr.
To Advertisement a/c
(Being the prepaid advertising expenses paid adjusted)
Profit and Loss a/c
Dr.
To Profit and Loss appropration a/c

Interest on Capital
Dr.
To Abdulla's Capital a/c
To Bader's Capital a/c
(Being the interest on capital provided for)
Profit and Loss appropration a/c
Dr.
To Interest on Capital

Partne's Salary
Dr.
To Abdulla's Capital a/c
To Bader's Capital a/c
(Being the partner's salary provided for)
Profit and Loss appropration a/c
Dr.
To Partner's Salary a/c

Abdulla's Capital a/c
Dr.
Bader's Capital a/c
Dr.
To Interest on Drawings
(Being the interest on drawings provided for)
Interest on Drawings a/c Dr.

To Profit and Loss appropration a/c

Profit and Loss appropration a/c
Dr.
To Abdulla's Capital a/c
To Bader's Capital a/c
(Being the profit distributed to the partners)

Part A : Adjusting entries
Particulars
Closing Stock a/c
Dr.
To Trading A/c
(Being the closing stock recognised)
Profit and Loss a/c
Dr.
To Provision for doubtful debts
(Being the provision for doubtful debts created)
Depreciation a/c
Dr.
To Land and Budiling a/c
To Plant & Machinery a/c
(Being the depreciation provided for)
Profit and Loss a/c
Dr.
To Depreciation a/c
(Being the depreciation transferred to P&L)
Salaries a/c
Dr.
Wages a/c
Dr.
To Outstanding salaries a/c
To Outstanding wages a/c
(Being the unpaid salaries and wages expenses recognized)
Prepaid Advertisement
Dr.
To Advertisement a/c
(Being the prepaid advertising expenses paid adjusted)
Profit and Loss a/c
Dr.
To Profit and Loss appropration a/c
(Being the net profit transferred to profit and loss
appropriation a/c)
Interest on Capital
Dr.
To Abdulla's Capital a/c
To Bader's Capital a/c
(Being the interest on capital provided for)
Profit and Loss appropration a/c
Dr.
To Interest on Capital
(Being the interest on capital transferred to P&L
appropriation)
Partne's Salary
Dr.
To Abdulla's Capital a/c
To Bader's Capital a/c
(Being the partner's salary provided for)
Profit and Loss appropration a/c
Dr.
To Partner's Salary a/c
(Being the partner's salary transferred to P&L
appropriation)
Abdulla's Capital a/c
Dr.
Bader's Capital a/c
Dr.
To Interest on Drawings
(Being the interest on drawings provided for)
Interest on Drawings a/c Dr.

Debit (OMR)
35,000

600

4,000

4,000

1,000
2,000

1,200

17,600

5,600

5,600

12,000

12,000

100
150

250

To Profit and Loss appropration a/c
(Being the interest on drawings transferred to P&L
appropriation)
Profit and Loss appropration a/c
Dr.
To Abdulla's Capital a/c
To Bader's Capital a/c
(Being the profit distributed to the partners)

250

Credit (OMR)
35,000

600

1,500
2,500

4,000

1,000
2,000

1,200

17,600

3,200
2,400

5,600

6,000
6,000

12,000

250

250

150
100

Particulars
To Opening Stock
To...


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