The following items taken below are taken from the adjusted account balances as of 31 st March, 2015. There are also some balances that are from April 1, 2014, and some balances that mature in 2018. With reference to the data given below, prepare the income sheet and the balance sheet for the year ending 31 st March 2015 . All figures given are in $. Cash 79000 Accumulated depreciation , April 1,2014 42000 Sales 12,00,00 0 Accumulated depreciation , March 31 st ,2015 49000 Purchases 810,000 Accounts Receivable, April 1, 2014 60000 Purchases discounts 10,000 Accounts Receivable, March 31 st , 2015 83000 Purchase allownaces 2000 Beginning inventory 149000 Additional paid in capital 20,000 Ending inventory 120000 Prepaid expenses (April 1, 2014) (total life 4 years) 40000 Accounts payable 61000 Paid in capital 120000 Salaries payable (April 2015) 14000 Interest Expense 13000 Retained Earnings, April 1 2014 60,000 Selling expenses 110000 General and administrative expenses 160,000 Bad debts 3000 Equipment 140000 Income Tax 30000 Dividends declared and paid 8,000 Loans Payable 85000 Loss due to fire 28000 Learning Objective: This problem gives a better understanding of the relationship between Balance Sheet and Profit And Loss Statement, besides the effect of different transactions on the Balance Sheet. The
The following items taken below are taken from the adjusted
account balances asof 31st March, 2015. There are also some
balances that are from Aril 1, 201!, and some balances that mature
in 201". #ith reference to the data gi$en below, reare the income
sheet and the balance sheet for the %ear ending 31st March 2015 .
All &gures gi$en are in '.(ash)*000 Accumulated dereciation ,
Aril 1,201!!2000+ales12,00,000Accumulated dereciation , March
31st,2015!*000,urchases "10,000 Accounts -ecei$able, Aril 1,
201!.0000,urchases discounts 10,000 Accounts -ecei$able, March
31st, 2015"3000,urchase allownaces 2000 /eginning in$entor%
1!*000Additional aid in caital 20,000 0nding in$entor% 120000,reaid
e1enses 2Aril 1, 201!3 2total life ! %ears3!0000 Accounts a%able
.1000,aid in caital 120000 +alaries a%able 2Aril 201531!0004nterest
01ense 13000 -etained 0arnings, Aril 1 201!.0,000+elling e1enses
110000 5eneral and administrati$e e1enses1.0,000/ad debts 3000
06uiment 1!00004ncome Ta1 30000 7i$idends declared and
aid",0008oans ,a%able"5000 8oss due to &re 2"000Learning
Objective:This roblem gi$es a better understanding of the
relationshi between /alance +heet and ,ro&t And 8oss +tatement,
besides the e9ect of di9erent transactions on the /alance +heet.
The transactions gi$en here gi$es a better understanding of how
dereciation of e6uiment and reaid e1enses, e1traordinar% loss,
direct e1enses, urchase allowances and discounts and bad debts
a9ect the /alance +heet and 4ncome +tatement.
