Mgt101 VU Current Assignemnt Solution Spring 2012 - 11 April 2012
Thursday, March 01, 2012 Edit ThisSEMESTER “SPRING 2012”
Financial Accounting (MGT101)
Assignment # 02
Due date: 12th April, 2012 Marks: 20
The following Trial balance was extracted from the books of ABC Company on 30th June, 2011.
Particulars
Debit
(Rs.)
Credit
(Rs.)
Cash 45,000
Accounts receivable 192,495
Plant and machinery 72,000
Land and building 246,000
Furniture and fixtures 7,800
Capital 348,000
Accounts payable 11,400
Purchases 120,000
Purchases return 6,600
Sales 210,000
Prepaid insurance 10,200
Advertisement expenses 12,000
Interest expenses 5,300
Salaries expenses 36,000
Outstanding salaries 3,000
Creditors 200,000
Carriage on sales 8,730
Carriage inwards 23,475
Total 779,000 779,000
Requirement:
a) Prepare an Income statement for the year ended 30th June, 2011 from the given Trial Balance.
(Marks: 12)
b) Also prepare a Balance sheet as on 30th June, 2011 from the given Trial Balance. (Marks: 6)
2 Marks has been assigned for formatting/presentation.
SOLUTION ON PAGE 2
| ABC | ||
| Income Statement | ||
| As on 30-12-2011 | ||
| | | |
| | | |
| REVENUE | | 2011 |
| Gross sales | | 210000 |
| | Less carriage of sale | 8730 |
| Net Sales | | 201270 |
| | | |
| Less Purchase | | |
| Purchases | | 120000 |
| | Add. Carriage inward | 23475 |
| Gross Purchase | | 143475 |
| | Less Purchase Return | 6600 |
| Net Purchase | | 136875 |
| | | |
| Gross Profit | | 64395 |
| | | |
| OPERATING EXPENSES | | |
| Selling | | |
| | Interest exp | 5300 |
| | Advertising | 12000 |
| Total Selling Expenses | 17300 | |
| | | |
| General/Administrative | | |
| | Salaries exp | 36000 |
| Total General/Administrative Expenses | 36000 | |
| | | |
| Total Operating Expenses | 53300 | |
| | | |
| | | |
| | | |
| NET INCOME (Profit) | 11095 | |
| ABC | ||
| Balance Sheet | ||
| As on 30-12-2011 | ||
| | | |
| ASSETS | 2011 | |
| Current Assets | | |
| Cash | 45000 | |
| Accounts Receivable | 192495 | |
| Prepaid Insurance | 10200 | |
| | Total Current Assets | 247695 |
| | | |
| Fixed Assets | | |
| Land & Building | 246000 | |
| Plant & Machinery | 72000 | |
| Furniture & fixtures | 7800 | |
| | Total Fixed Assets | 325800 |
| TOTAL ASSETS | 573495 | |
| | | |
| LIABILITIES | | |
| Current Liabilities | | |
| Accounts payable | 11400 | |
| Outstanding Salaries | 3000 | |
| | Total Current Liabilities | 14400 |
| | | |
| Long-term Liabilities | | |
| Creditors | 200000 | |
| | Total Long-term Liabilities | 200000 |
| | | |
| Owner's EQUITY | | |
| Capital | 348000 | |
| Net Profit | | 11095 |
| | Total Owner's Equity | 359095 |
| TOTAL LIABILITIES & EQUITY | 573495 | |
