financial statement
Assignment 2
On 31st March, 2022 the following Trial Balance was extracted from the books of Mr. Ben.
Debit Balances
Rs
Credit Balances
Rs.
Sundry Debtors
20,100
Capital
28,000
Drawings
3,000
Loan on Mortgage
9,500
Bills receivables
6,882
Rent received
250
Interest on Loan
300
Bill Payable
2,614
Cash at Bank
3,555
Sales
110,243
Motor Van
10,000
Sundry creditors
10,401
Stock on 1st April
6,839
Provision for bad debts
710
Cash in hand
2,050
Return outwards
1,346
Land and building
12,000
General expenses
3,489
Advertising expenses
3,264
Rent, rates and insurance
2,891
Salaries
9,097
Bad debts
525
Purchases
66,458
Return inwards
7,821
Carriage inwards
2,929
Carriage outwards
2,404
Total
163,604
Total
163,604
Adjustments:
(i). Closing stock is valued at Rs. 7,250
(ii). Depreciate Land and Building at 2%, Motor van at 15%
(iii). Salaries Rs. 750 and rates Rs. 350 are outstanding.
(iv). Goods costing Rs. 2,000 were taken by proprietor for private use, had been treated as credit sales.
(v). Prepaid insurance Rs. 270.
(vi). Provision for Bad debts is to be maintained at 5% on Debtors.
(vii). Provide interest on loan on mortgage 8% p.a. for 6 months.
You are required to prepare:
(a). Statement of Comprehensive Income for the year ended 31st March 2022 .
(b). Statement of Financial Position as at 31st March 2022 .
