Ask Question, Ask an Expert


Ask Financial Accounting Expert

Mr. Peterpan holds a retail shop in Cure-pipe. With the help of a friend he has extracted the given balances as at 31st December 2012 from his Accounting records however is not able to make his Financial Statements for the year then ended.

He has solicited your assistance for that.

895_trial balance.jpg

1382_trial balance_2.jpg

You were as well given with the mentioned additional information that concerned the year under review:

A) The Closing Inventory had cost Rs 20,200. These comprised some goods costing Rs 2,500 however a Net Realiasable Value of Rs 1,800 had.

B) Mr. Peterpan took goods costing Rs 3,000 for his personal use.

C) The Insurance Policy is for one year ending March 2013.

D) A Debtor for Rs 600 has immigrated to Canada devoid of leaving any address.

E) The Provision for Bad and Doubtful Debts is to be adjusted to 5% of Trade Receivables.

F) The Bank Loan was contracted on 1st July 2012 and is refundable in 10 equivalent annual installments starting one year after the contractual date.

G) The Depreciation Policy of Mr. Peterpan is detailed here under:

a) Premises: No Depreciation
b) Buildings: 5 % Straight Line Basis;
c) Equipment/Furniture: 15% on Cost
d) Motor Vehicles: 20% Reducing Balance Basis.

H) Accruals and Prepayments at 31.12.2012 were:

590_accruals and payments.jpg

problem 1: Required:

1) Make Mr. Peterpan’s Income Statement for the Year ending 31st December 2012.

2) His Balance Sheet as at that date.

problem 2: According to you, have you made Mr.Peterpan’s Financial Statements on a Going Concern basis? Support your answer with two arguments.          

problem 3: List down four users of Accounting information and Financial Statements.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M97013

Have any Question? 

Related Questions in Financial Accounting

Blue moon incorporated is owned 100 by maggie hayes the

Blue Moon Incorporated is owned 100% by Maggie Hayes. The corporation redeemed 25% of her stock for $130,000 cash. The corporation’s E&P is $110,000. Her stock basis is $80,000. How much of the payment is a taxable divid ...

Land transactions on the statement of cash flowsmilo

Land Transactions on the Statement of Cash Flows Milo Corporation purchased land for $540,000. Later in the year, the company sold a different piece of land with a book value of $270,000 for $180,000. How are the effects ...

1 paid monthly utility bill 2 purchased new display case

1. Paid monthly utility bill. 2. Purchased new display case for cash. 3. Paid cash for repair work on security system. 4. Billed customers for services performed. 5. Received cash from customers billed in transaction 4. ...

Tim company had sales of 30000 increase in accounts payable

Tim Company had sales of $30,000, increase in accounts payable of $5,000, decrease in accounts receivable of $1,000, increase in inventories of $4,000, and depreciation expense of $4,000. What was the cash collected from ...

N december 2009 homer simpson worked for springfield power

n December 2009, Homer Simpson worked for Springfield Power and earned $5,000, which will be paid on January 15, 2010. Federal income tax withholding is 15%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much ...

Aztec company sells its product for 160 per unit its actual

Aztec Company sells its product for $160 per unit. Its actual and projected sales follow. Units Dollars April (actual) 5,000 $800,000 May (actual) 3,600 576,000 June (budgeted) 7,500 1,200,000 July (budgeted) 5,000 800,0 ...

The following hypothetical transactions relate to

The following hypothetical transactions relate to Nestlé S.A., the Swiss chocolate manufacturer. Indicate whether each transaction immediately gives rise to an asset of the company under U.S. GAAP and separately, under I ...

The executor of danny macks estate has listed the following

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Pro ...

Brief exercise 7-2restin co uses the gross method to record

Brief Exercise 7-2 Restin Co. uses the gross method to record sales made on credit. On June 1, 2014, it made sales of $57,600 with terms 3/15, n/45. On June 12, 2014, Restin received full payment for the June 1 sale. Pre ...

Partnership liquidationjosh john and hassan are partners in

Partnership Liquidation Josh, John, and Hassan are partners in a retail lighting store. They share income and losses in the ratio of 2:2:1, respectively. The partners have agreed to liquidate the partnership. The partner ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate