RISE PREMIER SCHOOL OF ACCOUNTANCY

Batch: PRC January attempt

Total marks: 100
Subject: Introduction to Accounting
Time allowed: 120 Minutes
Teacher: Mr. Naveed Ansari
Full book Mock
Date: 18th January, 2025
Syllabus: Complete Book
Name: _________________________________ Rise ID: ______________
Choose the correct answers.
1. Which TWO of the following transactions will affect the assets and liabilities of the business at the same time
(a) Purchase of office furniture on credit
(b) Repayment of principal amount of a loan
(c) Credit sale of inventory
(d) Receipt of cash from a customer
Answer: Entry for (a) will be Office Furniture (Asset) Dr. while Account Payable for Furniture (Liability) Cr.
Entry for (b) will be Loan (Liability) Dr. While Cash/Bank (Asset) Cr.
In both cases, Assets and Liabilities affect at same time.

2. Which of the following statements are correct?

(I) Book-keeping is broader term than accounting
(II) Double entry bookkeeping is used to record dual aspect of transactions
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: Accounting covers all the aspects while book-keeping covers only Dual (Double entry recording)

3. Which of the following statements are correct?

(I) Directors are responsible for preparation of financial statements of a company for public disclosure
(II) Partners are required to prepare financial statement of a partnership for public disclosure
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: Directors are responsible as per book lines while Partners need not to disclose their Financial Statements.
4. In which of the following case both transactions would decrease owner's equity?
(a) Purchase of asset on credit Payment of Liabilities
(b) Purchase of assets Payment of expenses
(c) Distribution of assets to the owner Payment of expenses
(d) Payment of liabilities Sale of goods
Answer: Distribution to owner are Drawings or Dividends which decrease Equity and When Expenses are paid they are
debited which causes profit to decrease and ultimately effect Capital.

5. Which would be recorded by a debit entry in an account?

(a) Increase in capital (b) Decrease in assets
(c) Decrease in liabilities (d) Increase in liabilities
Answer: When Liabilities are decreased, they are debited, as per rules of accounting.

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6. Which of the following statements are correct?
(I) Purchase order is issued by seller to buyer.
(II) When an invoice is received from a supplier, it should be checked with goods received note.
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: Buyer puts an order for purchasing and procuring goods While seller sends us our Purchase invoice While
When invoice is received it would be checked with GRN as per book line

7. Balances of which of the following groups of items would appear on opposite sides of a trial balance?
(a) Carriage inward and carriage outward
(b) Inventory and drawings
(c) Sales and Return outwards
(d) Trade Receivable and Return outwards
Answer: Trade Receivable (Debtors) has a Debit Nature while Returns outwards has Credit nature.

8. On year end a shop owner has outstanding electricity bills of Rs.27,000. During the year electricity bills paid are
Rs.220,000. What adjustment will be required to utilities expense account regarding the outstanding bills?
(a) Rs. 27,000 Cr. (b) Rs. 220,000 Cr.
(c) Rs. 27,000 Dr. (d) None of these
Answer: Double entry would be Utilities expense Dr. & Utilities Payable Cr.

9. Why it is necessary to account for accrued expenses?

(a) So that current liabilities are not overstated
(b) So that profit is not understated
(c) So that current assets are not overstated
(d) So that profit is not overstated
Answer: If accrued expense is ignored then indirectly a debit of Expense is ignored. If expense is less debited then Profit
will become Overstated.

10. On 1 January 2020, an entity rents out part of its premises to a tenant for Rs.64,000 per month. As per
agreement, rent is increased by 5% from start of each year. Payments totaling Rs.736,000 were received from
the tenant during the year 2021 including rent for December 2020. Which figures should be reported in the
entity's financial statements at 31 December 2021?
Income statement Current Assets
(a) Rs.806,400 Rs.67,200
(b) Rs.803,200 Rs. 128,000
(c) Rs.803,200 Rs.67,200
(d) Rs.806,400 Rs.134,400
Answer: 64,000 Accrued Income for December. Next Year Rent = 64,000 + 5% of 64,000 (3,200) = 67,200
Dr. Rental Income account Cr.
Receivable b/d 64,000
P/L 806,400 Cash 736,000
Receivable c/d 134,400
870,400 870,400

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11. What is the effect on profit for the year and net assets when accrued income is not recorded?
Profit for the year Assets
(a) Overstated Overstated
(b) Overstated Understated
(c) Understated Overstated
(d) Understated Understated
Answer: When Accrued income (an Asset) is ignored Asset becomes understated but as complete entry is (Income
Receivable Dr. & Income Cr.) so if Income is not credited, it will not Add as Other Income so not Credited P/L A/c and
hence Profit will also be understated.

12. Nida is preparing her accounts for the year to 30 September 2004 using an extended trial balance. After
extendingand completing the extended trial balance, the totals are:
Income Statement Columns Balance Sheet Columns
Dr. Cr. Dr. Cr.
148,990 136,909 149,608 161,689
What is Nida profit or loss for the year to 30 September 2004?
(a) Profit of Rs. 12,081 (b) Loss of Rs. 12,081
(c) Profit of Rs. 12,699 (d) Loss of Rs. 12,699
Answer: As like all other Accounts, P/L is also an account written in statement form so If its debit side exceeds the credit
side then there will be Loss of the differential amount.

13. Wages accrued are shown as:

(a) an asset on the statement of financial position (b) a debit balance in wages account
(c) income on the statement of profit or loss (d) a credit balance in wages account
Answer: It will be a Current Liability so it has Credit balance in Wages A/c.

14. Shahab Industries deals in manufacturing and supply of chocolate machine and maintains provision for doubtful
debts @2.5%. On 1 July, the balance on the provision account was Rs. 1,075. The trade receivables at 30 June
amounted to Rs. 41,000. Which entry will accountant of Shahab Industries will make on 30 June to adjust
provision for doubtful debts?
(a) Provision for doubtful debts: Rs. 1025 Dr. Income Statement: Rs. 1025 Cr.
(b) Provision for doubtful debts: Rs. 50 Dr. Income Statement: Rs. 50 Cr.
(c) Income Statement: Rs. 1025 Dr. Provision for doubtful debts: Rs. 1025 Cr.
(d) Income Statement: Rs. 50 Dr. Provision for doubtful debts: Rs. 50 Cr.
Answer:
Dr. Provision for bad & doubtful debt account Cr.
b/d 1,075
Bad debt expense 50
c/d (41,000 x 2.5%) 1,025
1,000 1,000

15. Which of the following statements are correct?

(I) The good debts require any special accounting treatment unlike bad and doubtful debts.
(II) The doubtful debts must stay in the accounting records so that the business continues to chase
payment.

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(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: These are all book lines. Good debts need no special Treatment while business took Provision on Doubtful
debt and consider it as an expense (Increase or decrease) in Accounting Records.

16. The figures show a calculation of the provision for doubtful debts.
1 July 2017 30 June 2018
Rs. Rs.
Trade receivable X 750,000 Nil
Trade receivable Y 1,000,000 2,000,000
Trade receivable Z Nil 1,500,000
1,750,000 3,500,000
General provision 4,150,000 7,200,000
Total provision 5,900,000 10,700,000
During the period, X was made bankrupt and a final payment of Rs. 50,000 was received. What is the
charge for the year to 30 June 2018 for bad and doubtful debts?
(a) Rs. 5,550,000 (b) Rs. 5,500,000
(c) Rs. 5,750,000 (d) Rs. 5,800,000
Answer: As not only General but specific provision is also accounted for so;
Dr. Provision for bad & doubtful debt account Cr.
b/d 5,900,000
Bad debt expense 4,800,000
c/d 10,700,000
10,700,000 10,700,000

Dr. Adjusted Bad debt expenses account Cr.

Trade Receivable X 750,000
Provision for bad & 4,800,000 Cash/Bank 50,000
doubtful debt
c/d 5,500,000
5,550,000 5,550,000
17. A company increases its provision for bad debts by Rs. 16,000 from Rs. 30,000. What will be the effect of this
adjustment on the year-end balance sheet?
(a) Net profit will increase by 16,000 and Net trade receivables is decreased by 46,000
(b) Net profit will increase by 16,000 and Net trade receivables is decreased by 16,000
(c) Net profit will decrease by 16,000 and Net trade receivables is decreased by 46,000
(d) Net profit will decrease by 16,000 and Net trade receivables is decreased by 16,000
Answer:
Dr. Provision for bad & doubtful debt account Cr.
b/d 30,000
Bad debt expense 16,000
c/d 46,000
46,000 46,000

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18. Which of the following is the effect on net profit if a business decreases allowance for doubtful debts?
(a) It will increase net profit (b) It will decrease net profit
(c) It will increase net profit and gross profit(d) No effect
Answer: Increase in Provision is a charge to Income Statement while Decrease in Provision is a credit to P/L Account so
Net Profit will increase.
19. A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debts omission?
(a) Net profit would increase (b) Net profit would decrease
(c) Gross profit would understate (d) Gross profit would overstate
Answer: If Bad debts had not been written, it means Debit side of P/L A/c shortens which will result in Increase in Net
Profit.

20. The table shows information about a business.

Rs.
Provision for Doubtful Debts at 1 January 2020 700
Trade receivables at 31 December 2020 (after writing off bad debt of Rs. 30) 15,000
Charge to Income statement for bad and doubtful debts for the year ended 31 December 2020 200
(Including bad debts written off Rs30)
The percentage of provision that has been made for doubtful debts at 31 December2020 is:
(a) 5% (b) 6%
(c) 5.8% (d) 6.8%
Answer:
Dr. Adjusted Bad debt expenses account Cr.
Trade Receivable 30
Provision for bad &
doubtful debt (Balancing) 170
c/d 200
200 200

Dr. Provision for bad & doubtful debt account Cr.

b/d 700
Bad debt expense 170
c/d (15,000 x Rate = 870) 870
870 870

= 15,000 x Rate in % = 870 Proof: 15,000 x 5.8% = 870

Rate = 870/15,000 x 100
Rate = 5.8%

21. Depreciation expense is similar in concept with

(a) Prepaid insurance (b) Prepaid salary
(c) Unearned revenue (d) Accrued revenue
Answer: In this Question, always look in for a Liability item as Depreciation is uncertain Liability of a business
Option (a), (b) & (d) are Assets while (c) is Liability.

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22. Which of the following statements are correct?
(I) Sum of digit method and reducing balance method gives higher depreciation in early years
(II) Straight line method and sum of digit method compute depreciation over economic life
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: As in these methods, subsequent depreciation is on WDV so earlier the time more is the depreciation.
23. The following graph represents the:

(I) Accumulated Depreciation under Straight line method

(II) Cost under WDV method
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: Cost remains same under all method. Accumulated Depreciation increases always.
24. An entity imported a computer server machine having purchase price of Rs.8.5 million. The entity further
incurred the following cost:
Expenditure Amount
Import duties 8% of purchase price
Non-refundable taxes 5% of purchase price plus import duties
Refundable taxes 10% of purchase price plus import duties
Insurance in transit Rs.240,000
Carriage inward Rs.450,000
The server should be capitalized at:
(a) Rs. 11.825 million (b) Rs. 12.505 million
(c) Rs. 10.975 million (d) Rs. 10.525 million
Answer:
Purchase Price 8.5
Import duties 0.68
Non-refundable taxes 0.425 + 0.68
Insurance in transit 0.24
Carriage inward 0.45
10.975

25. Which of the following statements are correct?

(I) All items of property, plant and equipment must be depreciated.
(II) Depreciation under straight line method is charged for the date the asset is available for use
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
Answer: Not all items of PPE are depreciable. Some are excluded such as Land.

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26. Write down of inventories to net realizable value should be recognized as:
(a) Deferred expenses and transferred to profit and loss account based on inventory movement to which
write down relates.
(b) An expense in the subsequent period in which such write down is warranted
(c) An expense in the period in which write-down occurs.
(d) Current Liabilities
Answer: Prudence concept applies that Record expense in the period in which occurs.

27. Mr. Asif has provided the following details:

01 August Opening stock 86 units @ Rs. 30
04 August Purchase 50 units @ Rs. 38
18 August Purchase 44 units @ Rs. 40
27 August Purchase 40 units @ Rs. 80
19 August Sales 100 units @ Rs. 120
28 August Sales 60 units @ Rs. 140
Asif uses periodic FIFO method for inventory valuation. What is value of closing inventory at 31 August 2020?
(a) Rs. 5,150 (b) Rs. 4,500
(c) Rs. 2,987 (d) Rs. 4,000
Answer:
Rs.
Opening Stock Units 86
Add Purchased Units (50 + 44 + 40) 134
Units available for Sales 220
Less Sold units (100 + 60) (160)
Closing stock Units 60
Closing stock Value = Closing stock units x Rate of latest Purchase
Closing stock Value = (20 x 40) + (40 x 80) = 4,000

28. Mr. Ahmad has provided the following details:

01 August Opening stock 86 units @ Rs. 30
04 August Purchase 50 units @ Rs. 38
18 August Purchase 44 units @ Rs. 40
27 August Purchase 40 units @ Rs. 80
19 August Sales 100 units @ Rs. 120
28 August Sales 60 units @ Rs. 140
Ahmad uses Perpetual AVCO method for inventory valuation. What is value of closing inventory at 31 August 2020?
(a) Rs. 5,150 (b) Rs. 4,500
(c) Rs. 2,987 (d) Rs. 4,000
Answer: I have played a date trick. Don’t ignore date pattern.

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Purchases Sales Balance
Date
Qty Rate Value Qty Rate Value Qty Rate Value
01.08.20 86 30 2,580
04.08.20 50 38 1,900 136 32.94 4,480
18.08.20 44 40 1,760 180 34.67 6,240
19.08.20 100 34.67 3,466 80 34.67 2,774
27.08.20 40 80 3,200 120 49.78 5,974
28.08.20 60 49.78 2,987 60 49.78 2,987
2,987
29. In perpetual system, which of the following entries should be made to recognize drawings given to owner?
(a) Debit: Inventory & Credit: Drawings
(b) Debit: Drawings & Credit: Inventory
(c) Debit: Drawings & Credit: Purchases
(d) Debit: Purchases & Credit: Drawings

30. Which of the following correctly describes under-absorption?

(a) Actual > Absorption (b) Absorption > Actual
(c) Budget > actual (d) Actual > Budgeted

31. What entry should be recorded for under absorbed overheads at the end of period?
(a) Debit Production Overheads & Credit Cash / Accrual
(b) Debit Inventory (WIP) & Credit Production Overheads
(c) Debit Cost of sales (P&L) & Credit Production Overheads
(d) Debit Production Overheads & Credit Cost of sales (P&L)

32. Which of the following equation is correct for calculating cost of goods manufactured?
(a) = Prime Cost + Opening inventory (raw material) - Closing inventory (raw material)
(b) = Prime Cost + Opening inventory (WIP) - Closing inventory (WIP)
(c) = Factory Cost + Opening inventory (raw material)- Closing inventory (raw material)
(d) = Factory Cost + Opening inventory (WIP) - Closing inventory (WIP)

33. Which of the following statements are correct?

(I) Fuel cost used in transportation business is direct cost
(II) Sum of direct costs should exceed indirect costs.
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true

34. Raw materials which are incorporated into goods manufactured but are not easily identifiable to the goods
being made would be known as:
(a) Manufacturing overheads (b) Direct Materials
(c) Work in progress (d) Direct overheads

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35. A liability is classified as current liability if
(a) It will be paid out of current assets
(b) It is payable within one year or the normal operating cycle, whichever is shorter
(c) If the entity has a right to defer settlement of the liability for at least 12 months
(d) It is payable within one year or the normal operating cycle, whichever is longer.

36. Which of the following statements is correct?

(a) Bank Reconciliation Statement is prepared at the mid of the accounting year only
(b) Debit balance of Bank Statement is an adverse balance
(c) Bank Reconciliation Statement can be started with cash book balance only
(d) To search causes of difference, debit side of cashbook (Bank Column) is compared with the debit
column of Bank Statement and vice versa

37. Which of the following reasons require an entry in the bank account in your general ledger?
(I) A cheque from one of your customers amounting to Rs. 24,000 was returned by the bank as unpaid,
because the customer has gone bankrupt
(II) A cheque amounting Rs. 18,000 in the name of your brother was erroneously credited by the bank in
your account
(a) Only Statement (I) is true (b) Only Statement (II) is true
(c) Both are true (d) Both are not true
38. Bank omitted to debit your A/c then it will be:
(a) Add to cash book balance (b) Deduct from cash book balance
(c) Add to bank balance (d) Deduct from bank balance
39. The following is an extract from the trial balance of Ahmad Enterprises (AE) as at 31 December 2018:
Debit Credit
Rs.
Rent and insurance 545,000
Rent and insurance includes Rs. 75,000 paid for a photocopy machine. The machine was obtained on 1
November 2018 at a fixed rent of Rs. 75,000 per quarter and an additional Re. 0.40 for each copy. 40,000
copies have been made by AE up to 31 December 2018.
Calculate “Rent and insurance” that would be presented in statement of comprehensive income of AE for the
year ended 31 December 2018.
(a) Rs. 561,000 (b) Rs. 545,000
(c) Rs. 561,000 (d) Rs. 536,000
Answer:
Prepaid Rent Dr. 25,000
Rent expense Cr. 25,000
Dr. Rental expense account Cr.

Cash 545,000 P/L 536,000

c/d (40,000 x 0.4) 16,000 Prepaid c/d 25,000
561,000 561,000

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40. From the following information, what is the balance as per bank statement as on December 31, 2008. Balances
appearing as on December 31, 2008: As per cash book 150,000
• Cheques deposited but not credited by the bank amounted to Rs. 30,000
• A time-barred cheque amounting Rs. 50,000
• Cheques issued but not yet presented in the bank for payment amounted to Rs. 20,000
(a) Rs. 190,000 Dr. (b) Rs. 190,000 Cr.
(c) Rs. 90,000 Dr. (d) Rs. 90,000 Cr.
Answer: In Time-barred entry is Bank is debited as (150,000 + 50,000 = 200,000)
Balance as per cashbook 200,000
Add Unpresented cheques 20,000
Less Uncredited cheques (30,000)
Balance as per Bank Statement 190,000

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41. Following is the summarized trial balance of Rose Traders (RT) for the year ended 31 December 2020:
Debit Credit
------ Rs. in '000-----
Property, plant and equipment 65,000
Accumulated depreciation at 1 January 2020 17,500
Inventory at 1 January 2020 68,600
Trade receivables 73,600
Prepayments 1,560
Advances 480
Cash and bank balances 11,100
Capital 120,790
Drawings 16,960
14% Loan 35,000
Trade and other payables 57,480
Revenues 362,200
Purchases 299,600
Selling expenses 24,900
Distribution expenses 17,600
Administrative expenses 14,920
Rent income 2,250
Interest on bank overdraft 900
595,220 595,220

Additional information:
(i) Cost of closing inventory in hand on 31 December 2020 amounted to Rs. 92,600,000. Physical inventory
count revealed that goods costing Rs. 1,900,000 were returned by a customer for which no entry has been
made. These goods were sold for Rs. 2,600,000 on credit in last week of December 2020. RT determined
that these goods are out of fashion and can be sold at 40% of original selling price.
(ii) Prepayments include Fire insurance premium Ps. 600,000 paid for owner’s residence.
The annual policy is valid up to 31 March 2021.
(iii) On 1 June 2020, a machine was given at a quarterly rent of Rs. 750,000, receivable in advance.
(iv) Advances represent three months advance salary taken by a salesman on 1 November 2020.
(v) The loan was acquired on 1 July 2020 and the entire principal along with interest is repayable on 30
November 2021.
(vi) Depreciation of property, plant and equipment is charged at 10% on reducing balance method.
Depreciation should be equally divided between distribution and administrative expenses.
(vii) Cash and bank balances include bank overdraft of Rs. 2,980,000.
Required:
(a) Prepare statement of profit or loss for the year ended 31 December 2020.
(b) Prepare statement of financial position as at 31 December 2020.

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Solution:

Rose Traders
Statement of Comprehensive income
For Year ended 31.12.20 Marks
Rs. in “000”
Revenue (W-1) 359,600 0.5
Less Cost of goods Sold (W-2) -276,460 01
Gross Profit 83,140 0.5
Less Selling Expense (W-3) -24,900 0.5
Less Distribution Expense (W-4) -19,975 0.5
Less Administration Expense (W-5) -17,615 01
Operating Profit 20,650 0.5
Add Other Income 1,750 01
Less Financial Charges (W-6) -3,350 01
Net Profit 19,050 0.5

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Rose Traders
Statement of Financial Position
As on 31.12.20 Marks
Rs. in “000”
Assets
Non-Current assets
Property, Plant and Equipment 65,000 0.5
Less Acc. Depreciation (W-12) -22,250 42,750 0.5
Current assets
Inventory (W-7) 91,740 01
Debtor (W-7) 71,000 01
Prepayments (1,560 – 600) (W-8) 960 01
Advances (480 – 320) (W-10) 160 01
Cash & Bank (W-13) 14,080 01
Total Current assets 177,940 0.5
Total Assets 220,690 0.5

Equity & Liabilities

Opening Capital 120,790 0.5
Add Net Profit 19,050 0.5
Less Drawings (16,960 + 600) (W-8) -17,560 0.5
Closing Capital 122,280 0.5
Non-Current Liabilities
Long-term Loan 0
Current Liabilities
Trade and Other Payables
57,980 01
(57,480 + 500) (W-9)
Short-term Loan (W-11) 35,000 0.5
Interest Payable (W-11) 2,450 0.5
Bank OD (W-13) 2,980 01
Total Current Liabilities 98,410 0.5
Total Equity and Liabilities 220,690 0.5

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W-1 (Revenue) Rs.
Sales 362,200
Less Sales Return (W-7) -2,600
Less Discount Allowed -
359,600

W-2 (Cost of Sales) Rs.

Opening Stock 68,600
Add Purchases 299,600
Less Purchase Return -
Less Discount Received -
Add Wages -
Add Carriage Inward -
Less Closing Stock (W-7) -91,740
276,460

W-3 (Selling expense) Rs.

Selling expense as in Trial 24,900
24,900

W-4 (Distribution expense) Rs.

Distribution as in Trial 17,600
Depreciation (W-12) 2,375
19,975

W-5 (Administration expense) Rs.

Admin as in Trial 14,920
Salary expense (W-10) 320
Depreciation (W-12) 2,375
17,615

W-6 (Finance Cost) Rs.

Interest expense (W-11) 2,450
Interest expense on Bank OD (From Trial) 900
3,350

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Additional Workings
W-7 (Adjustment # 01):

Sales return Dr. 2,600

Debtor Cr. 2,600
Inventory Dr. 91,740
Cost of Sales Cr. 91,740

92,600

90,700 1,900
7

NRV = N/A NRV = 2,600 x 40% = 1,040

Cost or NRV
whichever is Lower
90,700 1,040

91,740

Adjusted Debtor a/c

Unadjusted Closing 73,600
Sales return 2,600
Adjusted Closing 71,000

W-8 (Adjustment # 02):

Drawings 600
Prepayments 600

W-9 (Adjustment # 03):

750
Rental income 500 ( x 2)
3
Income in advance 500

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Rental Income a/c
Cash 2,250
P/L (Balancing) 1,750
Income in advance 500

W-10 (Adjustment # 04):

480
Salary expense 320 ( x 2)
3
Advance 320

W-11 (Adjustment # 05):

Interest expense 2,450

Interest Payable 2,450

01.01.20------Accounting Year--------→31.12.20
|------------------------|----------------------→|------11 months------→|
01.07.20---------------→---Short-term---→01.11.20
6
= 35,000 x 14% x
12
= 2,450
W-12 (Adjustment # 06):

Depreciation 4,750
Acc. Depreciation 4,750

4,750
Distribution expense = = 2,375
2

4,750
Administration expense = = 2,375
2

Property, Plant and equipment a/c

Bal. b/d 65,000
Balance c/d 65,000

Accumulated Depreciation a/c

Balance b/d 17,500
Depreciation expense 4,750
(65,000 – 17,500) x 10%
Balance c/d 22,250

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W-13 (Adjustment # 07):

Cash and Bank Dr. 2,980

Bank OD Cr. 2,980

Cash and Bank a/c

Unadjusted Closing 11,100
Bank OD 2,980
Adjusted Closing 14,080

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