Following is the unadjusted Trail balance of Konark Mansi Pallavi & Co as on 31.03.2020   Store Equipment 20000   Accumulated depreciation, store equipment   2000 Merchandise inventory 17400   Office supplies 2730   Trade receivable 9700   Cash 2870   Prepaid store rent 12000   Prepaid Insurance 6000   Trade payable   7580 Share Capital   35000 Retained Earning   7100 Sales   115760 Sales Return and allowances 1170   Sales discount 1030   Purchase 69230   Purchase return and allowances   1180 Purchase discount   2150 Freight In 4200   Office salary expenses 5100   Sales salary expenses 9600   Advertisement expenses 2300   Interest expenses 1130   Telephone expenses 910   Store rent expenses 5400   Total 170770 170770   Prepare the statement of profit and loss and Balance sheet after considering following adjustment (50) Estimated depreciation on store equipment, 1000 Ending office supplies inventory, 390 Store rent from April 1, 2019 to September 30, 2019 was paid at 900 per month and rent for the following 12-month period was paid at 1000 per month in October 2019. The current insurance policy was taken for one year from April 1 2019

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Following is the unadjusted Trail balance of Konark Mansi Pallavi & Co as on 31.03.2020

 

Store Equipment

20000

 

Accumulated depreciation, store equipment

 

2000

Merchandise inventory

17400

 

Office supplies

2730

 

Trade receivable

9700

 

Cash

2870

 

Prepaid store rent

12000

 

Prepaid Insurance

6000

 

Trade payable

 

7580

Share Capital

 

35000

Retained Earning

 

7100

Sales

 

115760

Sales Return and allowances

1170

 

Sales discount

1030

 

Purchase

69230

 

Purchase return and allowances

 

1180

Purchase discount

 

2150

Freight In

4200

 

Office salary expenses

5100

 

Sales salary expenses

9600

 

Advertisement expenses

2300

 

Interest expenses

1130

 

Telephone expenses

910

 

Store rent expenses

5400

 

Total

170770

170770

 

Prepare the statement of profit and loss and Balance sheet after considering following adjustment (50)

  1. Estimated depreciation on store equipment, 1000
  2. Ending office supplies inventory, 390
  3. Store rent from April 1, 2019 to September 30, 2019 was paid at 900 per month and rent for the following 12-month period was paid at 1000 per month in October 2019.
  4. The current insurance policy was taken for one year from April 1 2019
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