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35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account?
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35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed ...
Adjusting Entries
To correct the errors found in the Profit & Loss Account, the following journal entries should be made:
  • Entry for recovered bad debt:
    Debtor's Account Dr. 1,500
    To Bad Debts Recovered Account 1,500
  • Entry for sales or return goods:
    Sales Return Account Dr. 7,000
    To Sales Account 7,000
    (Reverse the sale of goods sent on sale or return)
  • Entry for rent payment correction:
    Rent Expense Account Dr. 850
    To Landlord Account 850
  • Entry for cheque deposited in personal account:
    Bank Account Dr. 3,600
    To Debtors Account 3,600
  • Entry for insurance correction:
    Prepaid Insurance Account Dr. 1,200
    To Insurance Expense Account 1,200
  • Entry for sale posted incorrectly:
    Purchases Account Dr. 2,200
    To Sales Account 2,200
  • Entry for dishonoured cheque:
    Debtors Account Dr. 6,000
    To Discount Account 6,000

Profit and Loss Adjustment Account
After adjusting these entries, the Profit and Loss Account will be adjusted as follows:
  • Net Profit Before Adjustments: 36,000
  • Add:

    • Bad Debts Recovered: 1,500
  • Less:

    • Sales Returns: 7,000
    • Rent Expense Correction: 850
    • Insurance Expense Adjustment: 1,200
    • Incorrect Sale Correction: 2,200
    • Dishonoured Cheque: 6,000
  • Adjusted Net Profit: 36,000 + 1,500 - 7,000 - 850 - 1,200 - 2,200 - 6,000 = 20,250

These adjustments ensure the Profit & Loss Account reflects true financial performance by correcting the identified errors.
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35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account?
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35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account?.
Solutions for 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. 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Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account?, a detailed solution for 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account? has been provided alongside types of 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account? theory, EduRev gives you an ample number of questions to practice 35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account? tests, examples and also practice CA Foundation tests.
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