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Maarij Khan (8166) : Mr. Waseem Computation of Capital at End and at Start

The document summarizes the capital position of a business from January 1st, 2016 to December 31st, 2016. Total assets increased from Rs. 1,620,000 to Rs. 2,550,000 over the year as asset balances grew. Total liabilities also rose, from Rs. 157,300 to Rs. 208,100. As a result, capital increased from Rs. 1,462,700 to Rs. 2,341,900 over the year.

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Maarij Khan
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52 views8 pages

Maarij Khan (8166) : Mr. Waseem Computation of Capital at End and at Start

The document summarizes the capital position of a business from January 1st, 2016 to December 31st, 2016. Total assets increased from Rs. 1,620,000 to Rs. 2,550,000 over the year as asset balances grew. Total liabilities also rose, from Rs. 157,300 to Rs. 208,100. As a result, capital increased from Rs. 1,462,700 to Rs. 2,341,900 over the year.

Uploaded by

Maarij Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Maarij Khan (8166)

MR. WASEEM
COMPUTATION OF CAPITAL AT END AND AT START.

ACCOUNTS TITLE JANUARY 1ST,2016 DECEMBER 31ST,2016

ADD : ASSETS

Cash Rs 320,000 Rs 600,000


Account Receivables Rs 800,000 Rs 950,000
Merchandise Inventory Rs 100,000 Rs 300,000
Sales Equipment 0 Rs 100,000
Machinery Rs 400,000 Rs 600,000

TOTAL ASSETS Rs 1,620,000 Rs 2,550,000

LESS : LIABILITIES

Account Payable Rs 98,500 Rs 139,200


Salaries Payable Rs 58,800 Rs 68,900

TOTAL LIABILITIES -157300 -208,100

CAPITAL RS 1,462,700 Rs 2,341,900


ER 31ST,2016
MR. WASEEM
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31ST, 2016

Capital at End 2,341,900

ADD: Drawings 96,000


2,437,900
LESS: Additional Investment -128,560
LESS: Capital at Start -1,462,700

Unadjusted Net Profit 846,640

LESS: Expense:
Depreciation Expense (600,000 * 14%) 84,000
Rent Expense 20,000
Salaries Expense 16,500
Bad debts Expense 8,000
-128,500
ADD: Prepaid Advertising 30,000

Total Expense -98,500

NET PROFIT : 748,140


IT AND LOSS
1ST, 2016
MR. WASEEM
BALANCE SHEET
AS ON DECEMBER 31ST, 2016

ASSETS

CURRENT ASSETS:
Cash 600,000
Merchandise Inventory 300,000
Account Receivables 950,000
LESS: Allowance for bad debts -8000
942,000
Sales Equipment 100,000
Prepaid Advertising 30,000

TOTAL CURRENT ASSETS 1,972,000

FIXED ASSETS:
Machinery 600,000
LESS: Allowance for dep -84,000
516,000

TOTAL FIXED ASSETS 516,000

TOTAL ASSETS = 2,488,000


BALANCE SHEET
ER 31ST, 2016

EQUITIES

LIABILITIES:
Account Payable 139,200
Rent Payable 20,000
Salaries Payable 85,400

TOTAL LIABILITIES 244,600

OWNER'S EQUITY:
Capital at Start 1,462,700
ADD: Investment 128,560
LESS: Drawings -96,000
ADD: Net Profit 748,140

ADJUSTED CAPITAL 2,243,400

TOTAL EQUITIES = 2,488,000


KAREEM LIMITED
GENERAL JOURNAL

S.NO DATE PARTICULARS DEBIT

1 ─ Bank (100,000 * 10) 1,000,000


Share Application
( to record the receiving of 100,000 shares @
Rs 10)

2 ─ Share Application (80,000*10) 800,000


Share Capital
( to record the allotment of 80,000 shares @
Rs 10)

3 ─ Share Application (20,000*10) 200,000


Bank
( to record the refund of 20,000 shares @
Rs 10)

4 ─ Land (6000* 12) 72,000


Share premium (6000 * 2)
Share Capital ( 6000 * 10)
( to record the issuance of 6000 shares @
Rs 12)

5 ─ Bonds Payable ( 5000 * 12) 60,000


Share Premium ( 5000*2)
Share Capital (5000*10)
( to record the issuance of 5000 shares for the settl-
ement @ Rs 12)

6 ─ Preliminiary Expense (7000 * 16) 112,000


Share Premium (7000 * 6)
Share Capital (7000 * 10)
( to record the issuance of 7000 shares to promote-
rs @ Rs 16)

7 ─ Account Payable 950,000


Share Premium
Share Capital
(to record issuance of shares for the acquisition of
business @ Rs 25)
CREDIT

1,000,000

800,000

200,000

12,000
60,000

10,000
50,000

42,000
70,000

570,000
380,000

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