Question 5: - The trial balance of ZEESHAN at July 31, 2019, the end of the current fiscal year, and

the data needed to determine

year-end adjustments are as follow: Dr (Rs) Cr (Rs)
ZEESHAN
Trial balance Cash 6,290  
July 31, 2019 Laundry supplies 3,850  

Prepaid insurance 2,400  

Laundry equipment 81,600  

Accumulated depreciation   52,000

Unearned Revenue 700

Accounts payable   3,950

Capital Stock   21,900

Retained Earnings 12,000

1.Laundry supplies on hand at July 31 are Rs, 940. Dividend 16,600  

2.Insurance premiums expired during the year are Rs. 1,500. Laundry revenue   66,900
3.Depreciation of equipment during the year is Rs. 5,220.
Wages expense 15,900  
4.Wages accrued but not paid at July 31 are Rs. 850.
5.Accrued Revenue Rs. 2,400 Rent expense 14,400  
6.Unearned revenue at July 31 is Rs. 200. Utilities expense 8,500  
Required:
•Prepare adjusting entries Administration expense 910  
•Prepare adjusting trial balance  Income tax expense 7,000

  157,450 157,450
 ZEESHAN ZEESHAN ZEESHAN
Unajusted Trial balance Adjusting entries Adjusted Trial balance
31-Jul-19 31-Jul-19 31-Jul-19
  Dr (Rs) Cr (Rs) Dr (Rs) Cr (Rs) Dr (Rs) Cr (Rs)
Cash 6,290      6,290  
Laundry supplies 3,850    2910 940 
Prepaid insurance 2,400    1500 900 
Laundry equipment 81,600      81,600  
Accumulated depreciation   52,000   5220  57,220
Unearned Rent Revenue   700 500    200
Accounts payable   3,950       3,950
Capital Stock   21,900       21,900
Retained Earnings   12,000       12,000
Dividend 16,600      16,600  
Laundry revenue   66,900   2400  69,300
Wages expense 15,900   850  16,750 
Rent expense 14,400      14,400  
Utilities expense 8,500      8,500  
Administration expense 910      910  
 Income tax expense 7,000     7,000  
  157,450 157,450        
Adjustment            
Laundry supplies expenses     2910  2910 
insurance expenses     1500  1500 
depreciation expenses     5220  5220 
Wages Payable       850  850
Laundry revenue Receivable     2400  2400 
Rent Revenues       500  500
13380 13380 165,920 165920
 ZEESHAN
Income statment
For the year ended Dec 31
Revenues    
Laundry revenue   69,300
add Rent revenues   500
Total Revenues   69,800
Less operating expenses    
Wages expense -16,750 
Rent expense -14,400  
Utilities expense -8,500  
Administration expense -910  
Laundry supplies expenses -2910 
insurance expenses -1500 
Depreciation expenses -5220 
Total Operating expenses   -50,190
Net operating Income   19,610
 Income tax expense   -7,000
Net Income After tax   12,610
Retained earning statement
ZEESHAN

Retained earning statment

As on Dec 31, 2020

Retained earning start 12,000

Add Net Income After tax 12,610

Sub total 24,610

Less Dividend -16,600

Retained earning closing   8,010

 Balance sheet
ZEESHAN
Balance Sheet
As on Dec 31, 2020
Assets Rs. Liabilities & Equities Rs.
Current Assets   Current liablities  
       
Cash 6,290 Accounts payable 3950
Laundry supplies 940 Unearned Rent Revenue 200
Prepaid insurance 900 Wages Payable 850
Laundry revenue Receivable 2,400    
Total Current Assets 10,530 Total liabilities 5000
Fixed Assets   Equities  
Capital Stock
Laundry equipment 81,600 21,900
Accumulated depreciation
-57,220 8010
Retained earning closing
Total Fixed Assets 24,380 Total Equity 29,910
       
Total Assets 34,910 Total Liabilities & Equities 34,910
What do financial Statements look like ?
 7

Financials in the light of IAS 1

“
Financial Accounting The following is the pre-closing Trial Balance of Kama ran and Co. prepared on Dec, 31
Practice Questions of Financial Statement 2012
Name of Accounts Debit Credit  
Cash 10,000   
Merchandise Inventory (1.1.12) 8,000   
Office Equipment 30,000   
Purchases 52,000   
Salaries Expense 5,500   
Rent Expense 5,000   
Office Supplies 500   
Insurance Prepaid 1,200   
Accounts Receivable 20,000   
Sales Returns 500   
Furniture 17,300   
Kamran Drawings 5,000   
Unearned Commission   5,000  
Sales   75,000  
Purchase Returns   500  
Kamran Capital   60,000  
Accumulated Dep. On Office equipment   2,500  
Accounts payable   12,000  
Total 155,000 155,000  
Data for adjustments on December 31, 1990
•Merchandise inventory was valued at Rs. 10,000.
•Fee of Rs. 1,500 is still unearned.
•Rent Accrued Rs. 1,000.
•Office Supplies unused Rs. 200.
•Insurance expired, Rs. 800.
•Depreciation on Office Equipment was estimated at Rs. 2,500.
REQUIRED
a) Prepare Income Statement in classified report form for the year ended December 31, 2012.
b) Prepare Balance Sheet in classified account form as of December 31, 2012.
Thanks!
Any questions ?

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