For the year ending on 31 December 1988 and a balance sheet as on that date EXERCISESNo. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is as1under:CashAllowance for bad debtsInterest (Cr.)6,00020,00035,000 Capital12,4005,00012,0001,20080,0001,600600EquipmentsSundry debtorsFixture & fittingAdvertisementRentDelivery expensesSalesPurchase discountBills reteivablePurchasesTransportingSalaryStockMiscellaneous expenses5,00079,6003,00038,00050015,70014,0004,000Adjusting Data :1.Prepaid rent Rs. 2,000.Prepaid advertisement Rs. 400.Reserve for bad debts Rs. 1,000.Salary Outstanding for the year Rs. 7,000.Interest unearned Rs. 400.Closing stock was valued at Rs. 16,450.2.3.4.5.6.Required :Trading profit and loss account for the year ended December 31,1980.2.1.Balance Sheet as on that date.From the following particulars prepare trading and profit and loss account tor theyear ending on 31st December, 1988 and a balance sheet as on that date.1,200 Capital8,0002,0003,4007,00045012085020,00010055023,0005,0504003,000DrawingPurchasesInvestmentInterest on investmentWagesSundry DebtorsLoose ToolsBills payable001SalesSundry CreditorsReturns outwardsLoanCash in handCash at bankBuildingPlant & MachineryBills receivableSalariesOffice expensesDiscountRentBad Debts12,70010,0001001,400300450310170262ACCOUNTING PRINCIPLESFreight & CarriageInsurance500200Patent rights (10 years)unexpiredReturns inwardsFurniture2,00042053052.10052,100Stock on 31st December, 1988 was Rs. 3500. There were outstanding liabilities inrespect of wages Rs. 240; salaries Rs. 190; insurance was paid in advance to the extent ofRs. 60, Depreciate plant and nachinery by 10%; furniture 5%, patents by 10% and loosetools by 25%, Make a provision for 4 months interest on loan at 8 percent P.A.1 o O

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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For the year ending on 31 December 1988 and a balance sheet as on that date

EXERCISES
No. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is as
1under:
Cash
Allowance for bad debts
Interest (Cr.)
6,000
20,000
35,000 Capital
12,400
5,000
12,000
1,200
80,000
1,600
600
Equipments
Sundry debtors
Fixture & fitting
Advertisement
Rent
Delivery expenses
Sales
Purchase discount
Bills reteivable
Purchases
Transporting
Salary
Stock
Miscellaneous expenses
5,000
79,600
3,000
38,000
500
15,700
14,000
4,000
Adjusting Data :
1.
Prepaid rent Rs. 2,000.
Prepaid advertisement Rs. 400.
Reserve for bad debts Rs. 1,000.
Salary Outstanding for the year Rs. 7,000.
Interest unearned Rs. 400.
Closing stock was valued at Rs. 16,450.
2.
3.
4.
5.
6.
Required :
Trading profit and loss account for the year ended December 31,
1980.
2.
1.
Balance Sheet as on that date.
From the following particulars prepare trading and profit and loss account tor the
year ending on 31st December, 1988 and a balance sheet as on that date.
1,200 Capital
8,000
2,000
3,400
7,000
450
120
850
20,000
100
550
23,000
5,050
400
3,000
Drawing
Purchases
Investment
Interest on investment
Wages
Sundry Debtors
Loose Tools
Bills payable001
Sales
Sundry Creditors
Returns outwards
Loan
Cash in hand
Cash at bank
Building
Plant & Machinery
Bills receivable
Salaries
Office expenses
Discount
Rent
Bad Debts
12,700
10,000
100
1,400
300
450
310
170
262
ACCOUNTING PRINCIPLES
Freight & Carriage
Insurance
500
200
Patent rights (10 years)
unexpired
Returns inwards
Furniture
2,000
420
530
52.100
52,100
Stock on 31st December, 1988 was Rs. 3500. There were outstanding liabilities in
respect of wages Rs. 240; salaries Rs. 190; insurance was paid in advance to the extent of
Rs. 60, Depreciate plant and nachinery by 10%; furniture 5%, patents by 10% and loose
tools by 25%, Make a provision for 4 months interest on loan at 8 percent P.A.
1 o O

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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