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IAS1 Presentation of Financial Statements

The document contains the trading account, profit and loss account, and balance sheet for a business for the year ended March 31, 2007. It shows net purchases of Rs. 320,000, net profit of Rs. 240,152, total assets of Rs. 1,315,752 including cash, debtors, stock, and fixed assets. Current liabilities include trade creditors, wages payable, and bank loan. Equity includes capital and retained earnings.

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Adnan Ashraf
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39 views8 pages

IAS1 Presentation of Financial Statements

The document contains the trading account, profit and loss account, and balance sheet for a business for the year ended March 31, 2007. It shows net purchases of Rs. 320,000, net profit of Rs. 240,152, total assets of Rs. 1,315,752 including cash, debtors, stock, and fixed assets. Current liabilities include trade creditors, wages payable, and bank loan. Equity includes capital and retained earnings.

Uploaded by

Adnan Ashraf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Solution- 1

Trading Account For The Year Ended 31st March 2007


Dr
Particulars Rupees Rupees
Opening Stock 30,000
Net Purchases 320,000
G.p Transferred to P&L Account 650,000
___________
1,000,000
Profit & Loss Account For The Year Ended 31st March 2007
Particulars Rupees Rupees

Salaries & Wages 180,000


Add: Accrued Wages 8,000 188,000
Rent & Rates 140,000
less: Prepaid Rent & Rates (14,000) 126,000
Water & Electricity 21,000
Add: Accrued Water and Electricity 3,000 24,000
Insurance 51,000
less: Prepaid Insurance (25,000) 26,000
Depreciation Plant & Machinery(W-1) 39,000
Depreciation Furniture & Fitting(W-2) 7,008
Provision for Doubtful Debts 321000*4% 12,840

Net Profit(Transferred to Capital A/C) 240,152


__________
663,000

Balance Sheet For The Year Ended 31st March 2007

Assets Rupees Rupees


Current Assets:
Cash in Hand 20,000
Cash at Bank 134,000
Trade debtors 321,000
less: Provision for Doubtful Debts (12,840) 308,160
Prepaid Rent & Rates 14,000
prepaid Insurance 25,000
Accrued Interest Income 13,000
Closing Stock 70,000

Total Current Assets 584,160

Non-Current Assets:
Plant and Machinery 420,000
less: Accumulated Depreciation(W-3) (69,000) 351,000
Furniture and Fittings 97,600
less: Accumulated Depreciation(W-4) (17,008) 80,592
Fixed Deposit at Bank 300,000
Total Non-Current Assets 731,592

Total Assets 1,315,752

Solution - 2

William Watson Trading Account For The Year Ended 31st October 2008
Dr
Particulars Rupees Rupees
Opening Stock 1,970,000
Purchases 9,840,000
Less: Returns (360,000) 9,480,000
G.p Transferred to P&L Account 8,500,000
19,950,000
William Watson Profit & Loss Account For The Year Ended 31st October 2008
Particulars Rupees Rupees

Salaries & Wages 3,250,000


Add: Outstanding Wages 70,000 3,320,000
Rent & Rates 710,000
less: Prepaid Rent & Rates (60,000) 650,000
Van Running Expenses 420,000
Sundry Expenses 260,000
Discount Allowed 530,000
Depreciation van(W-1) 288,000
Depreciation Office Furniture(W-2) 160,000
Bad Debts written off 270,000
Increase in Provision for Doubtful Debts 40,000 310,000
Net Profit(Transferred to Capital A/C) 2,852,000
__________
8,790,000

Balance Sheet For The Year Ended 31st October 2008

Assets Rupees Rupees


Current Assets:
Cash in Hand 90,000
Bill Receivables 550,000
Debtors 4,110,000
less: Provision for Doubtful Debts (260,000) 3,850,000
Prepaid Rent & Rates 60,000
Closing Stock 3,040,000

Total Current Assets 7,590,000

Non-Current Assets:
Delivery Van 960,000
less: Accumulated Depreciation(W-3) (288,000) 672,000
Office Furniture 800,000
less: Accumulated Depreciation (160,000) 640,000

Total Non-Current Assets 1,312,000

Total Assets 8,902,000


For The Year Ended 31st March 2007
Cr
Particulars Rupees Rupees
Net Sales 930,000
Closing Stock 70,000

__________ ___________
1,000,000
ount For The Year Ended 31st March 2007
Particulars Rupees Rupees
G.P Brought Down by Trading A/c 650,000
Other Income(Accrued Interest) 13,000

___________
663,000

or The Year Ended 31st March 2007

Liabilities & Stockholders Equity Rupees Rupees


Liabilities
Current Liabilities:
Trade Creditors 119,600
Tax Payable 90,000
Accrued Wages 8,000
Acrrued Water & Electricity 3,000
Bank Loan 170,000

Total Liabilities 390,600

Equity
Capital 700,000
Add: Net Profit 240,152
less: Drawings (15,000) 925,152

Total Liabilities & Stockholders Equity 1,315,752

Trading Account For The Year Ended 31st October 2008


Cr
Particulars Rupees Rupees
Sales 17,630,000
Less: Returns (720,000) 16,910,000 Working-1
Closing Stock 3,040,000 Delivery Van
___________
19,950,000 Provision for Dept =960000*30%
Profit & Loss Account For The Year Ended 31st October 2008
Particulars Rupees Rupees
G.P Brought Down by Trading A/c 8,500,000
Other Income(Discount Received) 290,000
Working-2
office Furniture

Provision for Dept =800000*20%


___________
8,790,000

or The Year Ended 31st October 2008

Liabilities & Stockholders Equity Rupees Rupees


Liabilities
Current Liabilities:
Creditors 2,070,000
Bills Payable 380,000
Accrued Wages 70,000
Bank Overdraft 1,090,000

Total Liabilities 3,610,000

Equity
Capital 5,200,000
Add: Net Profit 2,852,000
less: Drawings (2,760,000) 5,292,000

Total Liabilities & Stockholders Equity 8,902,000


Working-1
Plant And Machinery 420,000
Provision for dept (30,000)
Book Value 390,000

Provision for Dept =3090000*10% 39,000

Working-2
Furniture & Fittings 97,600
Provision for dept (10,000)
Book Value 87,600

Provision for Dept =87600*8% 7,008

Working-3
Provision for Dept 30,000
Dept Exp 39,000
Accumulated Dept 69,000

Working-4
Provision for Dept 10,000
Dept Exp 7,008
Accumulated Dept 17,008
960,000

rovision for Dept =960000*30% 288,000

ffice Furniture 800,000

rovision for Dept =800000*20% 160,000

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