Vihaan runs a departmental store called Dawn Departmental Shop in Chamba town of Himachal Pradesh, India. The business was handed over to him by his farther Mr. Gautham after deciding to retire. Vihaan is Young and energetic graduate in commerce, and also holds a business degree in managing small and medium enterprises. Within two years of his joining the firm registered an annual growth of 20%. With this business success, he decided to purchase a small land nearby his ship building and for this purpose he approached the bank nearby. The bank manager, Mr. Rashid Ahmad asked him to furnish a statement of financial position. For this purpose, Vihaan arranged interviews for filling up the position of an accountant. Suma Koshy had applied and selected for the same and Vihaan handed over the following information to her, requesting her to do the needful- Amount (Rs.) 10,200 7600 Amount (Rs.) 2800 Particulars Particulars Depreciation on Building Depreciation on Equipment Building Share Capital Equipment Investment in Shares Accounts Payable Accounts receivable 3400 Deposits (Cr.) Cash 12000 14000 6240 20000 Trademarks register Inventory Investment in a Bank 1240 30400 8000 4000 Small Shop Prepaid Rent Revenue received in 3280 1600 Past years' Profit 17640 240 Loan from Mrs. Vihaan 10000 560 advance Assume yourself as Suma Koshy and answer the following questions- i) Prepare Trial Balance from the given details and inform Vihaan regarding the matching of the Trial Balance. ii) If a trial balance tallies, can it be concluded that there is no error? Justify with reason.
Vihaan runs a departmental store called Dawn Departmental Shop in Chamba town of Himachal Pradesh, India. The business was handed over to him by his farther Mr. Gautham after deciding to retire. Vihaan is Young and energetic graduate in commerce, and also holds a business degree in managing small and medium enterprises. Within two years of his joining the firm registered an annual growth of 20%. With this business success, he decided to purchase a small land nearby his ship building and for this purpose he approached the bank nearby. The bank manager, Mr. Rashid Ahmad asked him to furnish a statement of financial position. For this purpose, Vihaan arranged interviews for filling up the position of an accountant. Suma Koshy had applied and selected for the same and Vihaan handed over the following information to her, requesting her to do the needful- Amount (Rs.) 10,200 7600 Amount (Rs.) 2800 Particulars Particulars Depreciation on Building Depreciation on Equipment Building Share Capital Equipment Investment in Shares Accounts Payable Accounts receivable 3400 Deposits (Cr.) Cash 12000 14000 6240 20000 Trademarks register Inventory Investment in a Bank 1240 30400 8000 4000 Small Shop Prepaid Rent Revenue received in 3280 1600 Past years' Profit 17640 240 Loan from Mrs. Vihaan 10000 560 advance Assume yourself as Suma Koshy and answer the following questions- i) Prepare Trial Balance from the given details and inform Vihaan regarding the matching of the Trial Balance. ii) If a trial balance tallies, can it be concluded that there is no error? Justify with reason.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q1. Case Study
Vihaan runs a departmental store called Dawn Departmental Shop in Chamba town of Himachal
Pradesh, India. The business was handed over to him by his farther Mr. Gautham after deciding
to retire.
Vihaan is Young and energetic graduate in commerce, and also holds a business degree in
managing small and medium enterprises. Within two years of his joining the firm registered an
annual growth of 20%. With this business success, he decided to purchase a small land nearby
his ship building and for this purpose he approached the bank nearby. The bank manager, Mr.
Rashid Ahmad asked him to furnish a statement of financial position. For this purpose, Vihaan
arranged interviews for filling up the position of an accountant. Suma Koshy had applied and
selected for the same and Vihaan handed over the following information to her, requesting her to
do the needful-
Amount (Rs.)
10,200
7600
Particulars
Particulars
Amount (Rs.)
Accounts Payable
Accounts receivable
Deposits (Cr.)
Cash
Depreciation on Building
Depreciation on Equipment
Building
Share Capital
Equipment
Investment in Shares
2800
3400
12000
14000
20000
6240
Trademarks register
Inventory
Investment in a Bank
1240
30400
8000
4000
Small Shop
Prepaid Rent
Revenue received in
3280
1600
Past years' Profit
Loan from Mrs. Vihaan
17640
240
10000
560
advance
Assume yourself as Suma Koshy and answer the following questions-
i) Prepare Trial Balance from the given details and inform Vihaan regarding the matching of the
Tr
Balance.
ii) If a trial balance tallies, can it be concluded that there is no error? Justify with reason.
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