Blog: Fin611 Assignment No. 2

Semester “Spring 2011”
“ADVANCED FINANCIAL ACCOUNTING (FIN611)”
Assignment No. 02 Marks: 15


ABC Company Ltd. has the following Trial Balance as on 31st December, 2010:

Adjustments
• The inventory at the end of the period is valued at Rs.27,500
• General expenses include prepayments to the amount of Rs.1,500
• A provision for Income tax is necessary to the extent of Rs.7,500
• Directors recommended final dividend @ 5%
• Depreciation should be written of on all fixed assets @ 10% p.a.
• Company has authorized capital of 40,000 shares of Rs.20 each


Require
1. Income Statement for the period ended on 31st December, 2010
2. Statement of Changes in Equity for the period ended on 31st December, 2010
3. Balance Sheet as on 31st December, 2010


Important Tips
1. This Assignment can be best attempted from the knowledge acquired after watching video lecture no. 1 to lecture no. 29 and reading handouts as well as
recommended/reference books).


2. Video lectures can be downloaded for free from Online VU Lectures.


Particulars Rs. Particulars Rs.
Land & Building 150,000 Share Capital (10,000 ordinary shares of Rs.20 each) 200,000


Plant & Machinery 170,000 General Reserve 50,000
Inventory 32,500 Share Premium 20,000
Purchases 165,000 Retained Earning 12,500
Selling Expenses 30,000 Bank Loan (short term) 75,000
General Expenses 3,1500 Accounts Payable 17,500
Wages 1,000 Sales 300,000
Cash 49,000
Accounts Receivable 46,000
Total 675,000 Total 675,000


Schedule
Opening Date and Time June 09, 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time June 15, 2011 At 11:59 P.M. (Mid-Night)