Mgt101 VU Current Assignemnt Solution Spring 2012 - 11 April 2012

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SEMESTER “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

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