The document presents a trial balance extracted from the books of Arif Traders on June 30, 2002. It provides additional financial information and requires the preparation of a profit and loss account for the year ending June 30, 2002 and a balance sheet as of June 30, 2002. The assistant provides a detailed solution with workings and calculations, resulting in a profit and loss account showing a net profit of 154,000 and a balance sheet showing total assets of 638,500 equal to total liabilities and capital.
Financial accounting mgt101 power point slides lecture 32
1. Financial Accounting
1
Lecture – 32
Question
• Following trial balance has been extracted from the books of
Arif Traders on June 30, 2002
2. Financial Accounting
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Lecture – 32
Trial Balance
Arif Traders
Trial Balance as At June 30 2002
Title of Account Dr. Rs. Cr. Rs.
Sales 987,000 P
Stock on 30 June, 2002 175,500 B
Material Consumed 537,000 P
Cash in Hand 10,500 B
Cash at Bank 57,000 B
Capital Account July 01, 2001 495,000 B
Drawings 142,500 B
Furniture 72,000 B
3. Financial Accounting
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Lecture – 32
Trial Balance
Title of Account Dr. Rs. Cr. Rs.
Rent Paid 51,000 P
Wages Paid 129,000 P
Discounts Allowed 34,500 P
Discounts Received 18,000 P
Debtors 246,000 B
Creditors 124,500 B
Provision for Doubtful Debts Jul. 01 2001 13,500 B
Vehicles 120,000 B
Vehicle Running Costs 22,500 P
Bad Debts Written off 40,500 P
TOTAL 1,638,000 1,638,000
4. Financial Accounting
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Lecture – 32
• Further information available:
Wages and salaries payable on June 30, 2002 Rs. 4,500
Rent prepaid on June 30, 2002 Rs. 7,000
Vehicle running costs payable on June 30 Rs. 3,000
Increase in provision for doubtful debts Rs. 3,000
Depreciation rate is 12.5% for furniture and 20% for
vehicle.
• Required
You are required to prepare Profit and Loss Account for
the year and Balance Sheet as on June 30, 2002
5. Financial Accounting
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Lecture – 32
Solution
Arif Traders
Profit and Loss Account for the Year Ending June 30, 2002
Particulars Working Rs. Rs.
Sales
Less: Cost of Goods Sold (material consumed)
987,000
(537,000)
Gross Profit
Discount Received
450,000
18,000
Less: Expenses
Wages and Salaries 1
Rent 2
Discount Allowed
Vehicle Running Cost 3
Provision for Doubtful Debt 4
Depreciation 5
(133,500)
(44,000)
(34,500)
(25,500)
(43,500)
(33,000)
468,000
(314,000)
Net Profit 154,000
6. Financial Accounting
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Lecture – 32
Solution
Particulars Working Rs. Rs.
Sales
Less: Cost of Goods Sold (material consumed)
987,000
(537,000)
Gross Profit
Discount Received
450,000
18,000
468,000
11. Financial Accounting
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Lecture – 32
Solution
Arif traders
Balance Sheet As At June 30, 2002
Particulars Working Amount Rs. Amount Rs.
Assets
Fixed Assets 5
Current Assets
Stocks
Debtors 6
Prepaid Expenses
Cash at Bank
Cash in Hand
175,500
229,500
7,000
57,000
10,500
159,000
479,500
Total 638,500
Liabilities
Capital
Profit
Less: Drawings
495,000
154,000
(142,500) 506,500
Current Liabilities
Creditors
Expenses Payable 7
124,500
7,500 132,000
Total 638,500
12. Financial Accounting
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Lecture – 32
Solution
Particulars Working Amount Rs. Amount Rs.
Assets
Fixed Assets 5
Current Assets
Stocks
Debtors 6
Prepaid Expenses
Cash at Bank
Cash in Hand
175,500
229,500
7,000
57,000
10,500
159,000
479,500
Total 638,500
13. Financial Accounting
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Lecture – 32
Solution
Liabilities
Capital
Profit
Less: Drawings
495,000
154,000
(142,500) 506,500
Current Liabilities
Creditors
Expenses Payable 7
124,500
7,500 132,000
Total 638,500