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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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