Nauman S.

asked • 18d

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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