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Problem 2.12 - Solution

The document contains accounting information for an organization over two periods - February and March. It includes asset, liability and equity accounts as well as income statements, statements of changes in equity and balance sheets for the end of February and March. The financial position of the organization improved over the period as assets increased from Rs. 25,500 to Rs. 38,700 while earnings grew from Rs. 11,200 to Rs. 14,400.

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tanima
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70 views

Problem 2.12 - Solution

The document contains accounting information for an organization over two periods - February and March. It includes asset, liability and equity accounts as well as income statements, statements of changes in equity and balance sheets for the end of February and March. The financial position of the organization improved over the period as assets increased from Rs. 25,500 to Rs. 38,700 while earnings grew from Rs. 11,200 to Rs. 14,400.

Uploaded by

tanima
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Asset Accounts Liability Accounts Equity Accounts

Cash Accounts payable Share capital


Office Equipment Revenue from services
Office Supplies Supplies expense
Accounts Receivable Salaries expense
Rent expense
Asset = Liabilities +
Sl. No Cash Office Equipment Office Supplies Accounts Receivable Accounts payable
a 14000
Balance 14000 0 0 0 0
b -6000 6000
Balance 8000 6000 0 0 0
c 9000
Balance 17000 6000 0 0 0
d 1500 1500
Balance 17000 6000 1500 0 1500
e 7500
Balance 17000 6000 1500 7500 1500
f -800
Balance 17000 6000 700 7500 1500
g 6800 -6800
Balance 23800 6000 700 700 1500
h -1200 -1200
Balance 22600 6000 700 700 300
i 2100
Balance 22600 6000 700 2800 300
j -6000
Balance 16600 6000 700 2800 300
k -600
Balance 16000 6000 700 2800 300
a -600
Balance 15400 6000 700 2800 300
b 1900 -1900
Balance 17300 6000 700 900 300
c 3000 3000
Balance 17300 6000 3700 900 3300
d 18300
Balance 17300 6000 3700 19200 3300
e -2300
Balance 17300 6000 1400 19200 3300
f 12000
Balance 29300 6000 1400 19200 3300
g -12000 12000
Balance 17300 18000 1400 19200 3300
h -3100 -3100
Balance 14200 18000 1400 19200 200
i -6200
Balance 8000 18000 1400 19200 200
j -6000
Balance 2000 18000 1400 19200 200
k -1900
Balance 100 18000 1400 19200 200
Equity
Share capital Revenue from services Supplies expense Dividend Salaries expense
14000
14000 0 0 0

14000 0 0 0
9000
14000 9000 0 0

14000 9000 0 0
7500
14000 16500 0 0
-800
14000 16500 -800 0

14000 16500 -800 0

14000 16500 -800 0


2100
14000 18600 -800 0
-6000
14000 18600 -800 -6000

14000 18600 -800 -6000

14000 18600 -800 -6000

14000 18600 -800 -6000

14000 18600 -800 -6000


18300
14000 36900 -800 -6000
-2300
14000 36900 -3100 -6000
12000
26000 36900 -3100 -6000

26000 36900 -3100 -6000

26000 36900 -3100 -6000


-6200
26000 36900 -3100 -12200
-6000
26000 36900 -3100 -18200
-1900
26000 36900 -3100 -1900 -18200
Rent expense

0
-600
-600
-600
-1200

-1200

-1200

-1200

-1200

-1200

-1200

-1200

-1200

-1200

-1200
Statement of Profit and Loss
For the year ended
Febraury March
INCOME
Revenue from services 18600 36900
Total Income 18600 36900
EXPENSES
Supplies expense 800 3100
Salaries expense 6000 18200
Rent expense 600 1200
Total Expense 7400 22500
Earnings after tax (EAT) 11200 14400
F+M
3200
Statement of Changes in Equity
For the year ended
Equity share Retained
capital earnings Total
Balance, 01 February 0 0 0
Share capital issues 14000
Profit for the period 11200
Dividends 0
Balance, 28th February 14000 11200 25200

Balance, 01 March 14000 11200 25200


Share capital issues 12000
Profit for the period 3200
Dividends 1900
Balance, 31st March 26000 12500 38500
Balance Sheet
As at
Febraury March
ASSETS
Non-current Assets
Office Equipment 6000 18000
Total non-current assets 6000 18000
Current Assets
Cash and cash equivalents 16000 100
Office Supplies 700 1400
Accounts Receivable 2800 19200
Total current assets 19500 20700
Total assets 25500 38700
EQUITY AND LIABILTIES
EQUITY
Share capital 14000 26000
Retained earnings 11200 12500
Total Equity 25200 38500
LIABILTIIES
Non-current Liabilites

Total non-current liabilities 0 0


Current Liabilities
Accounts payable 300 200
Total current liabilities 300 200
Total liabilities 300 200
Total Equity and Liabilites 25500 38700

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