Question

complete analysis, balance sheet, and income statement only

Problem 3: Makapal Merchandising Mr. Kapal started a business called Makapal Merchandising, he is hoping and praying for the business to be successful. During the month of September he wanted to see all the transactions that has transpired. The following are the transactions that have occurred during September. Prepare a balance sheet for the as of the end of September and the income statement a. He opened a bank account in the name of the entity amounting to P15,000 b. Makapal Merchandising was granted a bank loan worth P10,000 c. The business purchases merchandise inventory for P5,500. The P5,500 was paid in cash d. The entity sold merchandise costing P600 for P1,000. The P1,000 was paid in cash c. The entity purchased more merchandise for P3,000, agreeing to pay the amount within 60 days. f. Merchandise costing P1,200 was sold for P1,850 which was all received in cash g. Merchandise costing P500 was sold for P800 with the customer agreeing to pay within 90 days h. The store acquired a five-year fire insurance policy for P500 paid in cash i. Mr. Kapal received an offer to sell his business for a total of P40,000. j. Mr. Kapal withdrew P1,500 for his personal expense k. The entity bought a tract of land which will serve as a parking lot for customers. The land costs P10,000, to be paid in cash 1. Mr. Kapal took merchandise costing P100 which could have been sold for P160 to customers m. The business paid P1,000 of its Loans Payable. n. Merchandise costing P400 was sold for P600 received in cash

Answer 1

MR.KALPANA

PROFIT AND LOSS ACCOUNT FOR THE YEAR END

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

To opening stock SALES $5,410.00

To purchase $8,500.00

to gross profit $2,610.00 CLOSING STOCK $5,700.00

$11,110.00 $11,110.00

TO INSURANCE $500.00 BY GROSS PROFIT $2,610.00

TO NET PROFIT $2,110.00

$2,610.00 $2,610.00

MR.KALPANA

BALANCE SHEET FOR THE YEAR END

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

CAPITAL ACCOUNT $15,610.00 FIXED ASSET

PARKING LOT $10,000.00

CURRENT LIABILITIES

BANK LOAN $9,000.00 CURRENT ASSET

SUNDRY CREDITORS $3,000.00 CASH AND BANK $10,950.00

SUNDRY DEBTORS $960.00

CLOSING STOCK $5,700.00

$27,610.00 $27,610.00

WORKING NOTE- LEDGERS

CAPITAL ACCOUNT

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

CASH ACCOUNT (DRAWING) $1,500.00 BY CASH $15,000.00

NET PROFIT $2,110.00

BALANCE C/D $15,610.00

$17,110.00 $17,110.00

CASH AND BANKACCOUNT

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

TO CAPITAL ACCOUNT $15,000.00 BY CAPITAL ACCOUNT $1,500.00

TO BANK LOAN $10,000.00 BY PURCHASE $5,500.00

TO SALES $1,000.00 BY INSURANCE $500.00

TO SALES $1,850.00 BY LAND $10,000.00

TO SALES $1,000.00 BY LOAN $1,000.00

TO SALES $600.00

BALANCE C/D $10,950.00

$29,450.00 $29,450.00

BANK LOAN

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

CASH ACCOUNT (DRAWING) $1,000.00 BY CASH $10,000.00

BALANCE C/D $9,000.00

$10,000.00 $10,000.00

PURCHASE ACCOUNT

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

CASH $5,500.00 BY PAND L ACCOUNT $8,500.00

SUNDRY CREDITOR $3,000.00

$8,500.00 $8,500.00

SALES ACCOUNT

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

TO P AND L ACCOUNT $5,410.00 By cash $1,000.00

By cash $1,850.00

By cash $1,000.00

BY SUNDRY DEBTORS $800.00

BY SUNDRY DEBTORS $160.00

By cash $600.00

$5,410.00 $5,410.00

SUNDRY DEBTORS ACCOUNT

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

TO SALES $800.00

TO SALES $160.00 BALANCE C/D $960.00

$960.00 $960.00

SUNDRY CREDITOR

PARTICULAR S AMOUNT PARTICULAR S AMOUNT

PURCHASES $3,000.00

BALANCE C/D $3,000.00

$3,000.00 $3,000.00

PURCHASES $8500

LESS- COSTOF SALES- $2800

CLOSING STOCK- $5700