III. Jay & Smith are partners in Jay &Smith Associates, sharing profits and losses equally. The following trial balance is prepared from the books of account as of 31 March 2020. Particulars Dr.(in B) 45000 Particulars Opening Stock Purchases Sales Return Salary and Wages Rent General Expenses Interest on Loan by Smith Sundry Debtors Furniture & Fixtures Computers Machinery Loan to Jay Cash at Bank Cash in hand Drawings: Jay Smith Additional Information: 760000 25000 Annexure 3 180000 110000 34400 1200 200000 50000 220000 300000 10000 75000 15000 60000 50000 2135600 Financial Ratios of 2020: Gross Profit Margin Ratio Net Profit Margin Ratio Inventory Turnover Ratio Current Ratio Quick Ratio ROC Sales Purchases Return Interest on Loan to Jay Sundry Creditors Loan by Smith Capital Accounts: Jay Smith Cr. (in B) 1250000 Prepare an income statement and Profit & Loss appropriation account for the year ended 31st March 2020 and a Balance Sheet as of that date after accounting for the following adjustments: 35.2% 10% 12 times. 3:1 2.5:1 10.10% 10000 600 Page 8 of 9 70000 20000 400000 385000 1. Stock as on 31st March 2020 was $50000 2. Rent is $10000 per month, payable to Jay. 3. Depreciate Furniture & Fixtures and Computers @ 20% per annum and Machinery @10% per annum. 4. Interest on capitals @ 6% per annum. 5. Manager's commission is payable @ 1% of net sales 6. Interest on loan by Smith was paid on 31st March 2020 2135600

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 52PSA

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Question

Prepare an income statement and Profit & Loss appropriation account for the year ended 31st March 2020 and a Balance Sheet as of that date after accounting for the following adjustments:

III. Jay & Smith are partners in Jay & Smith Associates, sharing profits and losses equally. The following trial balance
is prepared from the books of account as of 31 March 2020.
Particulars
Dr.(in B)
45000
Sales
760000
Purchases Return
25000
Interest on Loan to Jay
Sundry Creditors
Loan by Smith
Capital Accounts: Jay
Smith
Particulars
Opening Stock
Purchases
Sales Return
Salary and Wages
Rent
General Expenses
Interest on Loan by Smith
Sundry Debtors
Furniture & Fixtures
Computers
Machinery
Loan to Jay
Cash at Bank
Cash in hand
Drawings: Jay
Smith
Additional Information:
Annexure 3
180000
110000
34400
1200
200000
50000
220000
300000
10000
75000
15000
60000
50000
2135600
Financial Ratios of 2020:
Gross Profit Margin Ratio
Net Profit Margin Ratio
Inventory Turnover Ratio
Current Ratio
Quick Ratio
ROC
Prepare an income statement and Profit & Loss appropriation account for the year ended 31st March 2020 and a Balance
Sheet as of that date after accounting for the following adjustments:
Cr. (in B)
1250000
35.2%
10%
12 times
3:1
2.5:1
10.10%
10000
600
70000
20000
400000
385000
1. Stock as on 31st March 2020 was $50000
2. Rent is $10000 per month, payable to Jay.
3. Depreciate Furniture & Fixtures and Computers @ 20% per annum and Machinery @10% per annum.
4. Interest on capitals @ 6% per annum.
5. Manager's commission is payable @ 1% of net sales
6. Interest on loan by Smith was paid on 31st March 2020
Page 8 of 9
2135600

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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