Profit and Loss statement
On August 01, 2019 Mr. Ali started his business with cash investment of Rs.450,000 and office equipment worth Rs.150,000. He kept the records on single entry basis.
At the end of year, the following information was obtained from his accounting records:
Cash at Bank Rs.224,000 Accounting Receivable Rs.200,000 Accounts Payable Rs.98,000
Merchandise Inventory Rs.280,000 Prepaid Rent Rs.12,000 Unearned Commission Rs.18,000
Loan Payable (borrowed on Sep, 01,2018) Rs.120,000 Office Equipment Rs.240,000
Capital at End: Rs. 720,000
Additional Information on December 31, 2019:
i) Ali sold his personal Mehran car costing Rs. 500,000 for Rs. 3,00,000 and invested 50% pf the amount into business.
ii) Depreciation is to be charged on Fixed Assets @ 10% per anum
iii) The Bank statement showed a debit of Rs. 3,500 for service charges and Credit of Rs.4,500 for bank profit.
iv) Rent was Prepaid to the extent of Rs.3,000.
v) Accrued Interest on Loan @ 10% per anum.
vi) Bad Debts were estimated @ 5% on Accounts Receivable.
vii) Commission was un-earned to extent of Rs.6,000.
He withdrew from bank Rs.10,000 per month for his domestic use.
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