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Total Liabilities
Owner Equity
Capital
Retained Earning
Net Profit
Total OE
Liability + OE
Balance Sheet
Assets
3,750,000
(187,500)
100,000
45,000
162,500
(350,000)
3,520,000
Liabilities
112,500
500,000
4,000
616,500
Owner Equity
2,500,000
367,500
36,000
2,903,500
3,520,000 0
Income Statement
Sale Revenue 1,830,000
Less : Sale Return
Net Sales 1,830,000
Less: Cost of Goods Sold
Opening Stock/ Inventory 125,000
Purchases 1,500,000
Add: Transportation Charges 20,000
Less: Purchases Return
Net Purchases 1,520,000
Goods Avalible for Sale 1,645,000
Less: Closing Inventory 140,000
Cost of Goods Sold 1,505,000
Gross Profit 325,000
Less (Operating Expenses)
Salaries Expense 120,000
Utility Expenses 30,000
Fire Insurance 10,000
Auditor Fees 70,000
Depriciation Expense 5,600
Operating Expenses 235,600
Operating Income 89,400
Other Income -
Comission Income -
Net Income Before Tax 89,400
Tax @15% 13,410
Net Income After Tax 75,990
Balance Sheet
Assets
Building 1,800,000
Furniture 50,000
Cash 120,000
Acc Receivable 155,000
Inventory 140,000
Depriciation (5,600)
Total Assets 2,259,400
Liabilities
Acc Payable 145,000
Tax Payable 13,410
Total Liabilities 158,410
Owner Equity
Capital 1,800,000
Net Profit 75,990
Retained Earning 225,000
Total OE 2,100,990
Liability + OE 2,259,400 0
Balance Sheet
Assets
Land 25,000
Building 125,000 Note
Cash 15,000
Bank 17,000
Office Supplies 5,000 As in the question the Capital
Acc Receivable 15,000 amount is to be found, it can
Pre Paid Advertisement 36,000 be derived by
subtracting the total Liability
Short Term Investment 58,000 from the
Total Assets 296,000 total Assets to balance the
Liabilities accounting
Equation.
Acc Payable 30,000
Note Payable 25,800
Salaries Payable 32,500
Total Liabilities 55,800
Owner Equity
Capital 240,200
Total OE 240,200
Liability + OE 296,000
Balance Sheet of Ahmad Merchant
31-Dec-02
Assets
Building 52,000
Land 68,000
Cash 9,200
Acc Receivable 800 Note
Machinery 65,000
Supplies 400
Total Assets 195,400 As in the question the Capital
Liabilities amount is to be found, it can
Acc Payable 14,000 be derived by
subtracting the total Liability
Note Payable 29,000 from the
Salaries Payable 3,000 total Assets to balance the
Total Liabilities 43,000 accounting
Equation.
Owner Equity
Capital 152,400
Net Profit
Retained Earning
Total OE 152,400
Liability + OE 195,400
Income Statement
Liability + OE 84,844 -
Income Statement
Liability + OE 459,500 -