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Sagot :
Certainly! Let's break down each part of the question step-by-step to arrive at the correct solutions. We are using numerical values derived from accurate calculations.
### Part a: Adjusted Trial Balance
First, let's take the unadjusted trial balance provided:
- Cash: Rs. 50,000
- Inventory: Rs. 120,000
- Furniture: Rs. 50,000
- Land and Building: Rs. 200,000
- Rent and Rates: Rs. 15,000
- Interest on Debenture: Rs. 3,000
- Revenue: Rs. 500,000
- Cost of Goods Sold: Rs. 250,000
- Expenses: Rs. 50,000
- Debentures: Rs. 100,000
Adjustments to be made:
1. Closing stock: Rs. 100,000
2. Prepaid rent and rates: Rs. 4,000
3. Outstanding interest on debenture: Rs. 8,000
4. Depreciate furniture by 10%: Furniture value decreases by 10% of Rs. 50,000 = Rs. 5,000
5. Appreciate land and building by 5%: Land and building value increases by 5% of Rs. 200,000 = Rs. 10,000
Adjusted Trial Balance:
- Cash: Rs. 50,000
- Inventory: Rs. 100,000
- Furniture: Rs. 50,000 - Rs. 5,000 = Rs. 45,000
- Land and Building: Rs. 200,000 + Rs. 10,000 = Rs. 210,000
- Rent: Rs. 15,000
- Prepaid Rent: Rs. 4,000
- Interest on Debenture: Rs. 3,000
- Outstanding Interest: Rs. 8,000
- Revenue: Rs. 500,000
- Cost of Goods Sold: Rs. 250,000
- Expenses: Rs. 50,000
- Debentures: Rs. 100,000
### Part b: Income Statement
To create the income statement, we need to calculate the net income by taking into account revenue, cost of goods sold, expenses, and depreciation/appreciation.
Revenue: Rs. 500,000
Expenses:
1. Cost of Goods Sold: Rs. 250,000
2. Depreciation on Furniture: Rs. 5,000
3. Other Expenses: Rs. 50,000
4. Less: Appreciation on Land and Building: - Rs. 10,000
Total Expenses = Rs. 250,000 + Rs. 5,000 + Rs. 50,000 - Rs. 10,000 = Rs. 295,000
Net Income:
Net Income = Revenue - Total Expenses
Net Income = Rs. 500,000 - Rs. 295,000 = Rs. 205,000
### Part c: Balance Sheet
To draft the balance sheet, we segregate assets, liabilities, and equity.
Assets:
1. Cash: Rs. 50,000
2. Inventory: Rs. 100,000
3. Furniture: Rs. 45,000
4. Land and Building: Rs. 210,000
5. Prepaid Rent: Rs. 4,000
Total Assets = Rs. 50,000 + Rs. 100,000 + Rs. 45,000 + Rs. 210,000 + Rs. 4,000 = Rs. 409,000
Liabilities:
1. Debentures: Rs. 100,000
2. Outstanding Interest: Rs. 8,000
Total Liabilities = Rs. 100,000 + Rs. 8,000 = Rs. 108,000
Equity:
Equity = Total Assets - Total Liabilities
Equity = Rs. 409,000 - Rs. 108,000 = Rs. 301,000
### Part d: Cash Flow Statement
Cash Flow from Operations:
Net Income: Rs. 205,000
Cash Flow from Investing:
Depreciation Expense: - Rs. 5,000 (subtract since it’s a non-cash expense reducing book value)
Cash Flow from Financing:
Outstanding Interest: - Rs. 8,000
Net Cash Flow:
Net Cash Flow = Cash Flow from Operations + Cash Flow from Investing + Cash Flow from Financing
Net Cash Flow = Rs. 205,000 - Rs. 5,000 - Rs. 8,000 = Rs. 192,000
By following these detailed steps, we have arrived at a comprehensive solution for the given problem, covering the adjusted trial balance, income statement, balance sheet, and cash flow statement.
### Part a: Adjusted Trial Balance
First, let's take the unadjusted trial balance provided:
- Cash: Rs. 50,000
- Inventory: Rs. 120,000
- Furniture: Rs. 50,000
- Land and Building: Rs. 200,000
- Rent and Rates: Rs. 15,000
- Interest on Debenture: Rs. 3,000
- Revenue: Rs. 500,000
- Cost of Goods Sold: Rs. 250,000
- Expenses: Rs. 50,000
- Debentures: Rs. 100,000
Adjustments to be made:
1. Closing stock: Rs. 100,000
2. Prepaid rent and rates: Rs. 4,000
3. Outstanding interest on debenture: Rs. 8,000
4. Depreciate furniture by 10%: Furniture value decreases by 10% of Rs. 50,000 = Rs. 5,000
5. Appreciate land and building by 5%: Land and building value increases by 5% of Rs. 200,000 = Rs. 10,000
Adjusted Trial Balance:
- Cash: Rs. 50,000
- Inventory: Rs. 100,000
- Furniture: Rs. 50,000 - Rs. 5,000 = Rs. 45,000
- Land and Building: Rs. 200,000 + Rs. 10,000 = Rs. 210,000
- Rent: Rs. 15,000
- Prepaid Rent: Rs. 4,000
- Interest on Debenture: Rs. 3,000
- Outstanding Interest: Rs. 8,000
- Revenue: Rs. 500,000
- Cost of Goods Sold: Rs. 250,000
- Expenses: Rs. 50,000
- Debentures: Rs. 100,000
### Part b: Income Statement
To create the income statement, we need to calculate the net income by taking into account revenue, cost of goods sold, expenses, and depreciation/appreciation.
Revenue: Rs. 500,000
Expenses:
1. Cost of Goods Sold: Rs. 250,000
2. Depreciation on Furniture: Rs. 5,000
3. Other Expenses: Rs. 50,000
4. Less: Appreciation on Land and Building: - Rs. 10,000
Total Expenses = Rs. 250,000 + Rs. 5,000 + Rs. 50,000 - Rs. 10,000 = Rs. 295,000
Net Income:
Net Income = Revenue - Total Expenses
Net Income = Rs. 500,000 - Rs. 295,000 = Rs. 205,000
### Part c: Balance Sheet
To draft the balance sheet, we segregate assets, liabilities, and equity.
Assets:
1. Cash: Rs. 50,000
2. Inventory: Rs. 100,000
3. Furniture: Rs. 45,000
4. Land and Building: Rs. 210,000
5. Prepaid Rent: Rs. 4,000
Total Assets = Rs. 50,000 + Rs. 100,000 + Rs. 45,000 + Rs. 210,000 + Rs. 4,000 = Rs. 409,000
Liabilities:
1. Debentures: Rs. 100,000
2. Outstanding Interest: Rs. 8,000
Total Liabilities = Rs. 100,000 + Rs. 8,000 = Rs. 108,000
Equity:
Equity = Total Assets - Total Liabilities
Equity = Rs. 409,000 - Rs. 108,000 = Rs. 301,000
### Part d: Cash Flow Statement
Cash Flow from Operations:
Net Income: Rs. 205,000
Cash Flow from Investing:
Depreciation Expense: - Rs. 5,000 (subtract since it’s a non-cash expense reducing book value)
Cash Flow from Financing:
Outstanding Interest: - Rs. 8,000
Net Cash Flow:
Net Cash Flow = Cash Flow from Operations + Cash Flow from Investing + Cash Flow from Financing
Net Cash Flow = Rs. 205,000 - Rs. 5,000 - Rs. 8,000 = Rs. 192,000
By following these detailed steps, we have arrived at a comprehensive solution for the given problem, covering the adjusted trial balance, income statement, balance sheet, and cash flow statement.
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