Following is the unadjusted Trail balance of Konark Mansi Pallavi & Co as on 31.03.2020 Store Equipment 20000 Accumulated depreciation, store equipment 2000 Merchandise inventory 17400 Office supplies 2730 Trade receivable 9700 Cash 2870 Prepaid store rent 12000 Prepaid Insurance 6000 Trade payable 7580 Share Capital 35000 Retained Earning 7100 Sales 115760 Sales Return and allowances 1170 Sales discount 1030 Purchase 69230 Purchase return and allowances 1180 Purchase discount 2150 Freight In 4200 Office salary expenses 5100 Sales salary expenses 9600 Advertisement expenses 2300 Interest expenses 1130 Telephone expenses 910 Store rent expenses 5400 Total 170770 170770 Prepare the statement of profit and loss and Balance sheet after considering following adjustment (50) Estimated depreciation on store equipment, 1000 Ending office supplies inventory, 390 Store rent from April 1, 2019 to September 30, 2019 was paid at 900 per month and rent for the following 12-month period was paid at 1000 per month in October 2019. The current insurance policy was taken for one year from April 1 2019

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following is the unadjusted Trail balance of Konark Mansi Pallavi & Co as on 31.03.2020

Store Equipment	20000
Accumulated depreciation, store equipment		2000
Merchandise inventory	17400
Office supplies	2730
Trade receivable	9700
Cash	2870
Prepaid store rent	12000
Prepaid Insurance	6000
Trade payable		7580
Share Capital		35000
Retained Earning		7100
Sales		115760
Sales Return and allowances	1170
Sales discount	1030
Purchase	69230
Purchase return and allowances		1180
Purchase discount		2150
Freight In	4200
Office salary expenses	5100
Sales salary expenses	9600
Advertisement expenses	2300
Interest expenses	1130
Telephone expenses	910
Store rent expenses	5400
Total	170770	170770

Prepare the statement of profit and loss and Balance sheet after considering following adjustment (50)

Estimated depreciation on store equipment, 1000
Ending office supplies inventory, 390
Store rent from April 1, 2019 to September 30, 2019 was paid at 900 per month and rent for the following 12-month period was paid at 1000 per month in October 2019.
The current insurance policy was taken for one year from April 1 2019

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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