Page 30 - VIRANSH COACHING CLASSES

21. Revenue Receipts included Add to sales on the credit side Less to Furniture on the
in Capital Receipts e.g. sale of Trading A/c. Asset Side of the Balance
of goods included in sale of Sheet
Furniture
22. Commission to partners Show to the Debit Side of Show to the Credit Side of
as percentage of Gross Profit and Loss A/c Partners Capital/Current
Profit/sales. A/c or Add to Partners
Capital A/c.

Hidden Adjustment Given in Trial Balance
Sr. Adjustment Given in Trading and Profit and Balance Sheet
No. Trial Balance Loss A/c
1. Salaries/Rent Paid Add the amount of Salaries/ Show separately the amount
(For 10 months) Rent for 2 months to Salaries/ of Salaries/Rent for 2 months
Rent respectively on the Liabilities Side of the
Balance Sheet
2. Insurance premium paid Deduct the proportionate Show separately the amount
for 1 year ending 30th amount of Insurance Premium of prepaid insurance on the
June, 2019 (Accounting for 3 months from insurance Assets Side of the Balance
year ends on 31st March on the Debit Side of Profit Sheet
2019) and Loss A/c
3. Advertisement expenses Show 1/4th amount of Show the remaining i.e. 3/4th
(for 4 years) Advertisement expenses on of Advertisement expenses
the Debit Side of Profit and (not written off) on the Assets
Loss A/c Side of the Balance Sheet
4. Rent received Add the proportionate amount Show the same amount on the
(for 11 months) of Rent for one month to Rent Assets Side of the Balance
received on Credit Side of Sheet
Profit and Loss A/c
5. 10% Loan (Borrowed on Show the amount of Interest Add the amount of Interest
1st Jan. 2018)(Accounting Receivable on investment for Receivable on investment on
year ends on 31st March 3 months on the Credit Side of the Assets Side of the Balance
2018) the Profit and Loss A/c Sheet
6. 16% Investment Show the amount of Interest Add the amount of Interest
(Purchased on 1st Jan. Receivable on Investment for Receivable on Investment on
2019) (Accounting year 3 months on the Credit Side the Assets Side of the Balance
ends on 31st March 2019) of the Profit and Loss A/c Sheet

7. 10% Government Bonds Show the amount of Interest Add the amount of Interest
Receivable on the Credit Side Receivable to Government
of Profit and Loss Account Bonds on the Assets Side of
the Balance Sheet or show
seperately in Balance Sheet
Asset Side.

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