Q26You are required to prepare the balance sheet as on 31-12-2017 by using net change method from the following details.LiabilitiesOMRAssetsOMRShare capital200,000Furniture & fixtures200,000Bank loan50,000Inventories60,000Creditors70,000Debtors36,000 Cash24,000 320,000 320,000Balances of Debtors and creditors remain unchanged throughout the year. General price indices are on 1-1-12017----200; Average for the year ------240; on 31-12-2017----300. a.Retained earnings of OMR 15,000 by CPP methodb.No Balancing figure neither in HCA nor CPP methodc.No retained earningsd.None of them is correct

Current Purchase Power Method The basic factor of using the current purchase power method amount of…

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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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Q26

You are required to prepare the balance sheet as on 31-12-2017 by using net change method from the following details.

Liabilities	OMR	Assets	OMR
Share capital	200,000	Furniture & fixtures	200,000
Bank loan	50,000	Inventories	60,000
Creditors	70,000	Debtors	36,000
		Cash	24,000
	320,000		320,000

Balances of Debtors and creditors remain unchanged throughout the year. General price indices are on 1-1-12017----200; Average for the year ------240; on 31-12-2017----300.

Retained earnings of OMR 15,000 by CPP method

No Balancing figure neither in HCA nor CPP method

No retained earnings

None of them is correct

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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