FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question 5.
1. From the following Trial Balance of the ABC Company, prepare the (a)
Trading and Profit & Loss Account (b) Balance Sheet
Rs.
Rs.
Capital
Machinery
Furniture & Fixtures
47,500
Opening Stock
Cash in bank
Cash in hand
Account Payable
23,500
7,500
8,700
8,250
10,560
10,000
Purchases
Sales
Trade Creditors
Trade Debtors
39,200
63,850
1,610
4,150
3,920
1,500
Wages
Drawings
Sales Return
Rent
250
Advertising
Salaries
6,000
1,500
240
Mics. Expenses
Postage Expenses
Carriage Inward
Carriage Outward
Discount Received
1,500
190
500
1,000
500
Motor Vehicle
Loan
8,000
3,000
126,460
126,460
Additional Information:
Closing Stock 7,400
Depreciate Machinery at 10%, Furniture & Fixtures at 20% and Motor
Vehicle at 5%.
2. Analyze the Financial Position of the ABC Company by keeping in
view Trading and Profit & Loss Account and Balance Sheet you
prepared. What will you suggest to investors about the investment in
the company?
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