FINANCIAL ACCOUNTING

SECTION - B
ASSIGNMENT – I
The right manager of Ali Baba’s Corporation, who had no accounting background, prepared the
following balance sheet for the company at February 28, 2!2" The #s" Amounts were taken
directly from the company’s accounting records and are correct" $owe%er, the balance sheet
contains a number of errors in its headings, format, and the classification of assets, liabilities, and
owners’ e&uity"
Ali Baba’s Corporation
'anager’s #eport
("!) *"'" Thursday
Assets (Rs! O"ners’ E#$it% (Rs!
Capital +tock
#etained ,arnings
Cash
Building
Automobiles
*repaid ,-penses
+hort Term .n%estments
+elling ,-penses
Admin ,-penses
Bad /ebts
0ain on +ale of Assets
282,
28,
!(1,
1),
222,
!,
),
!),
)),
),
)1,
Accounts #ecei%able
3otes *ayable
+upplies
4and
Accounts *ayable
Accrued ,-penses
Trade Creditors
Bank 5%erdraft
.ncome Ta- *ayable
2!,
62),
28,
81,
78,
),
),
6,
2,
Re#$ire&'
*repare a corrected balance sheet" .nclude a proper heading"

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