Question

No.2 Saleem provided following Trial Balance on December 31, 2012 and adjustment data DEBIT 45,000 175.000 325.000 12.500 SI 6000 ITTILE OF ACCOUNT KASH AC RECEIVABLE OFFICE EQUIPMENT MARKETING EXPENSE PREAPID ADVERTISING OTHER EXPENSE OFFICE SUPPLIES EXPENSE INTEREST EXPENSE MDS INVENTORY BEGINNING PURCHASES TRANSPORTATION IN SALES RETURN SALARIES EXPENSE SALES REVENUE PURCHASES RETURN PURCHASES DISCOUNT INTEREST INCOME A/C PAYABLE CAPITAL-SALEEM SHORT-TERM LOAN BILL PAYABLE LONG-TERM LOAN TOTAL 3.500 16 27.500 275.000 22.00 12.00 65,000 S75.000 1800 4500 27.00 35.000 22.300 55.000 22.700 500 3.300 993,300 ADJUSTMENT DATA: 1. Mds. inventory ending Rs. 45,000 2. Depreciation on office equipment Rs.22.500 3. Bad debts expense 5% of Ae receivable 4. Tax rate is 2% applied Required: 1. Multiple step Income Statement showing EBIT and EAT 2. Balance Sheet classified form

please give me a full solution of this question

Answer 1

Income stuitement 15 20 30 a Amount - Particulars Revenue Sales $575000 Retuon ($12000) Interest income $563000 $27000 $590000 . $268700 ($17200) - Total (A) Expenses Puxhases (net) Changes in inventary ( $27700- $45000) Marketing expense other expense. office supplies Ioansportation in Salaries expense Bad debts ($17000 X 5%) Depreciation ERIT $12500 $6000 $3500 $22000 $65000 $ 8750 $22500 $ 198250

28 29 30 31 Intexst exp. EBT $16000) $182250 ($3645) $178605 Tax @2000 EAT Notes: 1) Bad debt expense on zecievable @ 5% will be deducted fom AIR f charged to pl 2 Depreciation will be deducted from the balance of office equipment

Balance sheet Amount $302500 Particulars Asset Non Cussent Auset office equipment Current Auet Cash - $45000 Ale recevable - $166250 Prepaid advertsing - $8500 Inventory - $45000 Total $264750 567250 Liabilites & Capital $229.300 Profit 178605 + $400905

$50000 Mon Current liability Long team loan Cussent liébility Ale payable $35000 shoot term loan $55000 Bille payable $22700 Tax payable $3645 Total $116345 567250. 14 SUNDAY

Answer 2

Q No.7 Following Trial balance and adjustment data is presented by Saleem , a sole-trader at the end of its financial year Dec.31,2002.

 

 

TITLE       OF       ACCOUNT	DEBIT	CREDIT
CASH	25,000
A/C RECEIVABLE	20,000
EQUIPMENT	32,800
ADVERTISING EXPENSE	3,000
PREPAID RENT	6,000
MISCELLANEOUS EXPENSE	2,000
OFFICE SUPPLIES EXPENSE	1,000
INTEREST EXPENSE	500
MDS. INVENTORY-BEGINNING	7,000
PURCHASES	25,000
CARRIAGE IN	200
SALES RETURN	900
SALARIES EXPENSE	8,000
SALES REVENUE		60,000
PURCHASES RETURN		800
PURCHASES DISCOUNT		300
COMMISSION INCOME		2,500
A/C PAYABLE		5,500
CAPITAL-SALEEM		39,800
NOTE PAYABEL		5,000
BANK OVERDRAFT		7,500
LONG-TERM LOAN		10,000
TOTAL	131,400	131,400

 

ADJUSTMENT DATA ON DEC.31,2002:

 

1. Depreciation      charged @ 2% on non-current assets

2. Income      tax 15%

3. Merchandise      Inventory-ending Rs.1700