Model: Double account system—Water supply company’s final A/c From the following trial balance extracted from the books of water supply company, prepare its final accounts under the double account system for the year ended 31 December 2010:
Trial Balance of Water Supply Company as on 31 December 2010
|
Debit Balances |
Rs. |
Credit Balances |
Rs. |
|
Stores in Hand |
30 |
Equity Shares |
21,000 |
|
Cash in Hand |
50 |
12% Preference Shares |
10,000 |
|
Cash as Bank |
250 |
10% Debentures |
8,000 |
|
Investments |
3,140 |
Water Charges |
3,400 |
|
Printing & Stationary |
20 |
Meter Chargers |
500 |
|
Sundry Debtors |
640 |
Reserve Fund |
150 |
|
Salaries |
1,200 |
Unclaimed Dividends |
50 |
|
Dividend on Pref. Shares |
1,200 |
Balance to Net Revenue |
1,070 |
|
Land & Building |
5,000 |
|
|
|
Plant & Machinery |
10,000 |
|
|
|
Pipelines & Reservoir |
20,000 |
|
|
|
Miscellaneous Expenses |
40 |
|
|
|
Water Meters |
500 |
|
|
|
Maintenance of: |
|
|
|
|
(i) Pipelines & Reservoirs |
100 |
|
|
|
(ii) Filter Beds |
30 |
|
|
|
(iii) Plant & Machinery |
60 |
|
|
|
General Repairs |
170 |
|
|
|
Taxes & Rates |
20 |
|
|
|
Overhead Expenses |
280 |
|
|
|
Interest on Debentures |
800 |
|
|
|
Interest Dividend on Equity Shares |
40 |
|
|
|
|
44170 |
|
44,170 |
Adjustments:
|
1. Outstanding Expenses: |
|
|
Taxes & Rates |
Rs.40,000 |
|
Salaries |
Rs.60,000 |
|
2. Reserve Fund Should Be Raised to |
Rs.2,00,000 |
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