1. Office Equipment 7000
Accumulated
depreciation- Office
Equipment
1000
Office Supplies 3800
Trade Receivables 1900
Cash 770
Prepaid Rent 2400
Trade Payables 1100
Unearned revenue 400
Share Capital 10000
Retained Earnings 2100
Dividends 1400
Revenue from services 7200
Salaries expense 3800
Telephone Expense 730
21800 21800
Backbay Company provides local mail delivery service in the financial district
of Mumbai. The trial balance of the company is as follows
BACKBAY COMPANY
Unadjusted Trial Balance , February 28 20XX
Additional Information
a) Prepaid rent represents rent for February to April
b) The inventory of office supplies at the end of February was Rs.3200
c) Revenue earned for services performed but not yet billed at the end of
FebruauryRs.1600
d) Revenue earned for services performed ,paid for in advance was Rs.210
e) Depreciation on Office equipment for February was Rs.250
f) Accrued salaries at the end of February were Rs 540
Prepare
1) Prepare adjusted Trial Balance
2) Prepare The February statement of Profit & loss and Balance Sheet
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2. Solution
BACKBAY COMPANY
Adjusted Trial Balance as on February 28 20XX
Particulars Debit( Rs) Credit ( Rs)
Office Equipment 7000
Accumulated depreciation- Office Equipment 1250
Office Supplies 3200
Trade Receivables(1900+1600) 3500
Cash 770
Prepaid Rent 1600
Trade Payables 1100
Unearned revenue( 400-210) 190
Salaries Payable 540
Share Capital 10000
Retained Earnings 2100
Dividends 1400
Revenue from services(7200+1600+210) 9010
Salaries expense( 3800+ 540) 4340
Office Supplies expense 600
Telephone Expense 730
Rent expense 800
Depreciation expense 250
24190 24190
This study source was downloaded by 100000846035951 from CourseHero.com on 05-08-2022 06:53:04 GMT -05:00
https://www.coursehero.com/file/104652621/Backbay-Co-Illustration-on-Pl-and-BSdocx/
3. BACKBAY COMPANY
Statement of Profit and Loss
For the month ended February 28 20XX
Income Amount Amount
Revenue from services 9010
Other Revenues -
Total Income 9010
Expenses
Employee Benefits Expense or Salaries 4340
Depreciation & Amortization Expenses 250
Rent expense 800
Office supplies Expense 600
Telephone expense 730
Total Expenses 6720
Profit Before Tax 2290
Tax expenses -
Profit After Tax or Profit for the period 2290
BACKBAY COMPANY
Balance Sheet , February 28 20XX
ASSETS Amount Amount
Non-Current Assets
Property, Plant and equipment( 7000-1250) 5750
Financial Assets
Investments
-
Total Non-Current Assets 5750
Current Assets
Inventories( Office supplies) 3200
Financial Assets
Trade Receivables 3500
Cash & Cash Equivalents 770
Other Financial assets -
Prepaid Rent 1600
Total Assets 14820
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 10000
Other equity (Note -1) 2990
Total Equity 12990
LIABILITIES
Non-Current liabilities
Financial Liabilities
Borrowings
-
Total Non-Current Liabilities -
This study source was downloaded by 100000846035951 from CourseHero.com on 05-08-2022 06:53:04 GMT -05:00
https://www.coursehero.com/file/104652621/Backbay-Co-Illustration-on-Pl-and-BSdocx/
4. Current Liabilities
Financial Liabilities
Trade Payables ( Includes salary payables) 1640
Unearned revenue 190
Total Equity and Liabilities 14820
Note-1- Calculation of Other equity
Opening profit 2100
Profit for the period 2290
(-) Dividends 1400
Closing Profit or Surplus or Retained Earnings 2990
This study source was downloaded by 100000846035951 from CourseHero.com on 05-08-2022 06:53:04 GMT -05:00
https://www.coursehero.com/file/104652621/Backbay-Co-Illustration-on-Pl-and-BSdocx/
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