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Date 13th January, 2022, XI – Commerce, 8% Loan (taken on 1.7.2018) = 13700 x = 1096 x = 822, 13700 + 822 = 14522, 1) BS Liability side 14522, , P&L A/c. Dr. side 822, Implied adjustment OR Hidden adjustment, 2), , 1) Stock on 31st March, 2019 was valued at ` 28,000, Effect 1 ) Trading A/c. Credit side 28000, 2) B/S Asset side Rs. 28000, 2) Create a Provision for doubtful debts on Sundry Debtors @ 5%, (Debtors 35,500), Effect 1 ) P& L A/c. Debit side 1775, 2) B/S Asset side Rs. 35500-1775 = 33725, 3) Depreciate Motor car by 5% p.a. and Machinery by 7% p.a.( 30,000 & 30,000), 1 ) Depreciation A/c., Motor Car A/c. P&L Debit side 1500, Machinery A/c. P&L Debit side 2100 = 3600, 2) B/S Asset side Rs. 30000-1500 =, 28500 Motor Car, B/S Asset side Rs. 30000-2100 = 27900 Machinery, 4) Outstanding expenses Rent ` 800 & Wages `1,000, Effect 1) Add in Rent & Wages, 2) Balance Sheet liability side O.S. Exp., 5) Charge interest on Capital @ 3% p.a. (capital 80000), Effect 1) P&L A/c. Dr. side 2400/2) Balance Sheet liability add in Capital 2400, 6) Goods of ` 4,000 withdrawn by proprietor for personal use., Effect 1) Trading A/c Credit side 4000/2) Balance Sheet liability side less 4000 from capital, , Importance of Final Account, 1) Business result (Financial position of business), 2) Amount receivable from Debtors and amount payable to, Creditors/supplier, 3) It helps the stakeholder to take certain decision, 4) Liability or tax payable to Govt. or outsider, Trial balance debit side, All debit side items of trial balance will appear in Trading Account, or Profit &, Loss account or Balance Sheet Asset side (except return or drawing), Nominal nature exp. Or which one is capital nature expenses