Question No 1 :-

Part A Post Adjustment Correct Journal Entries

Journal Entry No 1
Bank Account Dr 100,000
Lender Loan Account Cr 100,000

Explanation :-

The Company Take Loan Which Not Shown In Trial Balance Amount Of 100,000 After Passing
The Journal Entries This Loan Is Adjusted In Post Trial Balance

Journal Entry No 2
Interest Expense Dr 6000
Interest Payable Cr 6000

Explanation :-

The Company Also Not Charge The Interest Expense And Interest Payable In The Trial Balance
This Should Be Adjusted In The Post Trial Balance

Journal Entry No 3
Insurance Expense Dr 2880
Insurance Premium Cr 2880

Explanation :-

The Company Also Not Include The Difference Or Changes In Post Adjusted Trial Balance Of
Insurance Prepaid Now Adjusted

Journal Entry No 4
Depreciation Expense Dr 21600
Accumulated Depreciation Cr 21600

Explanation :-

The Depreciation Amount 21600 Is Adjusted And Journal Entry Passed

Journal Entry No 5
Cash Dr 30,000
Service Revenue Cr 30,000

Explanation :-

The Company Rendered The Service This Include Amount 30000 This Amount Is Adjusted And
The Disclosed In Trial Balance

Journal Entry No 6
Supplier Expense Dr 15,000
Cleaning Supplier Payable Cr 15,000

Journal Entry No 7
Utilities Expense Dr 580
Utilities Payable Cr 580
 Question No 1 :-
Part B Post Adjustment Trial Balance
Particular Debit Credit
Account Payable 99420
Account Receivable 244400
Accumulated Depreciation 77400
Loan 100,000
Cash(394490+30000) J5 424490
Cleaning Equipment 151200
Cleaning Supplier 35000
Cleaning Supplier Expense(243000+15000) J6 258000
Cleaning Supplier Payable 15000
Depreciation(12600+21600) J4 34200
Accumulated Depreciation J4 21600
Dividend 10000
Insurance Expense(9360+2880) J3 12240
Prepaid Insurance 11520
Prepaid Insurance Advance 2880
Rent Expense 45600
Retain Earning 16900
Revenue 2080000
Salary 1456000
Share Capital 200,000
Unearned Revenue(50,000+30000) J5 80,000
Utilities Expense(6050+580) J7 6630
Utilities Payable 580
Interest Expense(4500+6000) J2 10500
Interest Payable J2 6000
Total Rs 2699780 2699780
 Question No 1 :-
Part C Statement Of Profit And Loss Account
Year End 31 December 2020
Revenue 2080000
Unearned Revenue 80,000
Other Income Dividend 10,000
Total Revenue Rs 2170,000
Less
Cleaning Supplier Expense (258000)
Depreciation (34200)
Insurance Expense (12240)
Rent Expense (45,600)
Salary (1456000)
Utilities Expense (6630)
Interest Expense (10500)
Net Profit/Loss 346830

Question No 1 :-
Part D Statement Of Financial Position
Year 31 December 2020

Assets Rs

Cleaning Equipment(151200-99000) 52200

Account Receivable 244400
Cash(424490+20000) 444490
Cleaning Supplier 35000
Prepaid Insurance 11520
Total Valuation Of Assets Rs 787610
Equity And Liabilities

Retain Earning 16900

Profit From Income Statement 346830
Account Payable 99420
Loan 100000
Cleaning Supplier Payable 15000
Advance Insurance 2880
Share Capital 200,000
Utilities Expense Payable 580
Interest Payable 6000

Total Valuation Of Equity And Liabilitiy 787610

Question No 1 :-
Part E Accounting Principle Which Accountant Not Follow

Full Disclosure Principle

Full Disclosure Principle Under This Every Accountant Must Disclose Full Figure And Correct
Figure Disclosed In This Question Accountant Not Follow This Type Of Main Accounting
Principle By This Accountant Unable To Gave Adjusted Trial Balance By This Accounting
Principle Accountant Figure Not Accurate After Passing The Journal Entries Adjustment Our
Income Statement And Financial Statement Prepared
 Question No 2 :-
A-Alternative Ratios For Understanding

1-Current Ratio :-

Current Ratio Is The Main Ration For Understanding The Performance Of The Company For
Example The Company All Current Assets Is 200000 And All Current Liabilities Is 80000 So It
Calculate As 200000/80000=2.5 Means Their Ration Of Overall Current Assets Is 2.5

2-Liquidy Ratio

Liquidity Ratio Also Main Ratio To Understand The Performance Of Company By Taking
Example Above It Calculated As Current Assets-Stock/Current Liability In This Example We Take
As 200000-Stock 200000 Devide By 80000=2.25 Is Their Liquidity Ratio

Question No 2 :-
B-Limitation Of Change In Profit

Long Term Goals :-

Profit Aim Is One Of The Top Goal Of Financial Management

Lowering Product Quality Hurt Your Reputation And Profit Requirement
Must Unload All The Available Stock To Meet Customer Demand
First Understand Short Term Goals
Than After Understanding Short Term Goal Convert And Implement Long Term Goal

Product Quality :-

Another Limitation Is Cut Decrease Product Quality To Increase Profit

Lower Quality Effect Reputation Of Business
Lower Quality Result Loss Customer
Force Employee Work Harder To Not Loss The Quality
Donot Compromise The Product Quality

Question No 2 :-
C-Possible Reason Fall Revenue

1-Not Focus The Quality Of Product

 Reason Decrease The Product Quality

 Greed To Earn Higher Profit But Backward Result Obtain Result Loss Revenue
 Not Better Policy
 Not Better Meet The Requirement Of Customer
 Not Proper Check In All Employess

2-Not Focus Other Competetor In Market

 Overlook This Case

 Market Chain Incompetent
 Not Gave Proper Feedback Who Enter The Competetor
 Not Analyse The Strong And Weakness Of Competetor
 Question No 2 Part II :-
Return On Equity

Return On Equity Calculated As :-

Net Income/Shareholder Equity

Year 2017=2500/12000x100=21%
Year 2018=2100/16800x100=12.5%

Reason Of Difference In Return On Equity

 Income Not Increase

 Not Retain Customer
 Not Gave Quality Production
 Revenue Decreases
 Expense Increase

How To Improve The Return On Equity

 Better Understanding Cost And Profit Requirement

 Not Compromise The Quality Of Product
 Increase Revenue
 Attain More Customer
 Better Production
 Train Employees
 Increase The Profit