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    Assignment#3

    Uploaded by

    ZEe Op
    The document provides the trial balance information for Afzal company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 57,27,000. Additional information includes the ending merchandise inventory of Rs. 45,000, depreciation of 10% on fixed assets, and a tax rate of 30%. The required tasks are to prepare an income statement showing earnings before interest and taxes (EBIT) and a balance sheet. The document also provides the trial balance information for Delux company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 4000,000. Additional information includes the ending merchandise inventory of Rs. 140,000, depreciation

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    Assignment#3

    Uploaded by

    ZEe Op
    18 views2 pages
    The document provides the trial balance information for Afzal company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 57,27,000. Additional information includes the ending merchandise inventory of Rs. 45,000, depreciation of 10% on fixed assets, and a tax rate of 30%. The required tasks are to prepare an income statement showing earnings before interest and taxes (EBIT) and a balance sheet. The document also provides the trial balance information for Delux company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 4000,000. Additional information includes the ending merchandise inventory of Rs. 140,000, depreciation

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    The document provides the trial balance information for Afzal company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 57,27,000. Additional information includes the ending merchandise inventory of Rs. 45,000, depreciation of 10% on fixed assets, and a tax rate of 30%. The required tasks are to prepare an income statement showing earnings before interest and taxes (EBIT) and a balance sheet. The document also provides the trial balance information for Delux company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 4000,000. Additional information includes the ending merchandise inventory of Rs. 140,000, depreciation

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views2 pages

    Assignment#3

    Uploaded by

    ZEe Op
    The document provides the trial balance information for Afzal company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 57,27,000. Additional information includes the ending merchandise inventory of Rs. 45,000, depreciation of 10% on fixed assets, and a tax rate of 30%. The required tasks are to prepare an income statement showing earnings before interest and taxes (EBIT) and a balance sheet. The document also provides the trial balance information for Delux company as of December 31, 2004 including account titles, debits, and credits totaling Rs. 4000,000. Additional information includes the ending merchandise inventory of Rs. 140,000, depreciation

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    © All Rights Reserved
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    Assignment # 3

    Q No.1 Afzal company provided information on December 31,2004.

    TITLE OF ACCOUNT DEBIT CREDIT


    Plant assets Rs.37,50,000
    Cash 100,000
    Account Receivable 162,500
    Merchandise Inventory-beg 62500
    Sales return 7000
    Purchases 12,45000
    Transportation in 20000
    Salaries expense 145000
    Prepaid advertising 20000
    Director’s fee 2,15000
    Sales revenue 18,75000
    Commission income 20000
    Accumulated depreciation 350000
    Retained earning 367500
    Paid up capital 25,00000
    10% debentures payable 500000
    Account payable 112500
    Purchases return 2000
    57,27,000 57,27,000

    Additional information:
    1. Merchandise Inventory-ending Rs.45,000
    2. Depreciation 10% on fixed assets
    3. Tax rate is 30%

    Required:
    a) Income Statement showing EBIT
    b) Balance Sheet
    Q No.2 Delux company authorized capital is 500,000 shares of Rs.10 each. Following information
    provided on December 31,2004.

    TITLE OF ACCOUNT DEBIT CREDIT


    Cash 120,000
    Account receivable 155,000
    Account payable 145,000
    Merchandise inventory 125,000
    Purchases 1500,000
    Paid up capital 1800,000
    Transportation 20,000
    Salaries expense 120,000
    Sales 1830,000
    Building 1800,000
    Auditor’s fee 70,000
    Furniture 50,000
    Retained earnings 225,000
    Fire insurance 10,000
    Utility expenses 30,000
    4000,000 4000,000

    Additional information:
    1. Merchandise Inventory ending Rs.140,000
    2. Provide depreciation on furniture 20% and building at 2%.
    3. Income tax 40%

    Required:
    a) Income Statement
    b) Balance Sheet

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