Final Accounts with Adjustments Step-by-Step Solution Principles of Accounting I Part 4

Master the concept of Final Accounts with Adjustments in this detailed step-by-step solution from Principles of Accounting I. This video is perfect for students of ICOM, FA, and beginners in accounting who want to understand how adjustments affect financial statements. In this lecture, you will learn: ✔ Trading Account Preparation ✔ Profit & Loss Account ✔ Balance Sheet Preparation ✔ Important Adjustments (Depreciation, Outstanding Expenses, Prepaid Expenses, etc.) ✔ Exam-focused problem solving techniques 🌐 Visit our website for more solved papers, notes, and learning resources: 👉 https://bcfeducation.com/ This video will help you score high in exams and build strong accounting concepts. 👍 Like | Share | Subscribe for more accounting and finance tutorials! #FinalAccounts #AccountingAdjustments #PrinciplesOfAccounting #ICOM #FinancialAccounting #BCFEducation #AccountingStudents #SolvedProblems #BalanceSheet #profitandloss #TradingAccount, #Profit&Loss, #Balance Sheet, #FinancialStatements समायोजन के साथ अंतिम खाते Paper 2013 ICOM I Topic (Final Accounts) FBISE The following balances are taken from the Books of a Trader: Particulars Rs. Particulars Rs. Capital 120,000 Drawings 21,000 Stock 45,000 Plant & Machine 24,000 Furniture 1500 Purchases 295,000 Sales 435,000 Insurance 1500 Purchases Returns 4000 Sales Returns 7000 Rent 5000 Trade Expenses 2000 Salaries 24,000 Wages 40,000 Bad Debts 1000 Investments @ 6% (1-4-2000) 50,000 Sundry Debtors 40,000 Sundry Creditors 19000 Bad Debts Reserve 800 Cash 12,200 Establishment 6000 Misc. Receipts 1200 Patents 4800 After making the following adjustments, prepare Trading and Profit and Loss Account for the year ended on 31st December 2000 and a balance sheet on that date: Adjustments: (i) Stock on December 31st, 2000 was Rs. 75,000. (ii) Depreciate machine by 10% and furniture by 20%. (iii) Wages Rs. 5000 and salaries Rs. 1200 are outstanding. (iv) Write off Rs. 500 as bed debts and create a reserve on bad and doubtful debts at 5% and reserve for discount on debtors at 2%. (v) Investment is made on 01-04-2000 and no interest has been received so far. Short Questions Paper 2013 FBISE Topic Final Accounts (i) Explain outstanding expenses Pass journal entry for outstanding expenses. (ii) What is Balance sheet? MCQ’s Paper 2013 FBISE Topic Final Accounts (i) The valuation of closing stock is at ______ A. Market price B. Cost or market price whichever is less C. Cost price D. Cost or market price whichever is higher (ii) Closing stock is recorded in ______ A. Income statement only B. Trading account only C. Profit and loss account only D. Trading account and balance sheet Paper 2014 ICOM I Topic (Journal, Ledger & Trial Balance) FBISE Question: Following is the Trial balance of Mukhtar Trading Co. as on 31" December, 2005. You are required to prepare the Trading and Profit and Loss account of the business for the year ending 31" December, 2005 and a balance sheet as on that date: Particulars (Rs) (Rs) Opening stock 10,000 Purchases and Sales 40000 1,00,000 Sundry Debtors and Creditors 30,000 8,125 Plant and Machinery 35,000 Freehold Premises 24,000 Salaries 5,000 Wages 6,575 Carriage Outward 375 Printing and Stationery 400 Bad Debts 500 Provision for Bad Debts 225 Trade Expenses 750 Cash in hand 5,250 Capital 50,000 Insurance 500 1,58,350 1,58,350 Adjustments: a. Wages payable Rs. 500. b. Bad debts Provision to be adjusted to 2% on Debtors. c. Allow interest on capital at 5% d. Closing stock valued at Rs. 15000 Short Questions Paper 2014 FBISE Topic Final Accounts (i) Define Contingent liabilities. (ii) What is meant by Bad debts recovered? (iii) Define Balance sheet. (iv) What do you mean by Unearned Revenue? MCQ’s Paper 2014 FBISE Topic Final Accounts I. All those expenses which have NOT become due but paid in advance are called ____. A. Accrued expenses B. Outstanding expenses C. Prepaid expenses D. Payable expenses II. Adjusting entries are made: A. During the accounting period B. At the end of accounting year C. In the beginning of the year D. At any time III. Excess of assets over liabilities is called A. Profit B. Income C. Expense D. Capital