Why Form 8865 Accounting 2024

Hi, in this video, I am going to explain final accounts with adjustments. So first, let us see the problem. The following trial balance has been extracted from the books of Miss Alice Magnolia on 31st March 2014. So all debit items and credit items are given. Let's see the adjustments. The first one is closing stock, which is 80,000. The second one is commission received in advance, which is still not received, but will be paid. The third one is salaries paid in advance. The fourth one is interest on capital at 6%, interest on drawings at 5%, and interest on bank loan, which is 300. There is also depreciation of machinery at 10% per annum, interest on investment at 5%, and provision for bad and doubtful debts at 5%. The next adjustment is to provide a 2% discount on debts, followed by a 5% discount on credit for 30 days. With this information, they asked you to prepare the trading and profit and loss account for the year ended 31st March 2014, and the balance sheet as of that date after giving effect to the above adjustments. Usually, final accounts are prepared only at the end of the year. Final accounts consist of three parts: trading account, profit and loss account, and balance sheet. While preparing the final accounts, you need to open all the accounts simultaneously. Before solving the problem, let's see what items are there and make some notes based on that. The first item is closing stock. If there is no closing stock, it means there is currently no closing stock. This will be the opening stock for the next year. The second item is commission received in advance. The third item is rent not yet received, which is 1,000 rupees. The fourth item is...