Mr. Ali is running “Hyper Star Traders” a soleproprietorship business located at
ID: 2433313 • Letter: M
Question
Mr. Ali is running “Hyper Star Traders” a soleproprietorship business located at the Mall
Road, Lahore. At the year end the business has:
Furniture Rs. 40,000
Plant 200,000
Capital 280,000
On 30th November 2009 Mr. Ali submitted a tender for sale ofgoods of Rs. 20,000 which
is likely to be confirmed shortly. Bank debited service chargesRs. 150 and interest on
loan Rs. 500 and credited dividend for Rs. 2,000 in the month ofDecember (intimation
from bank was received on 7th January 2010). Mr. Ali alsoestimates that 5% of the
amount will not be collectable from sundry debtors. House rentallowance Rs. 5,000 has
been paid on 31st December from his personal account, on thesame date stock was
valued at Rs. 200,000 and plant Rs. 160,000 because of its wearand tear.
The following balances (in the books of Hyper Star Traders) arealso given along with
above information as on 31st December 2009:
ParticularsRs. Particulars Rs.
Opening stock120,000 Bankbalance 36,000
Sundry Debtors100,000 Bills payable 20,000
Long term Investments60,000 Returns outwards 4,800
Returns inwards8,000 Commission 2,000
Purchases680,000 Sales 924,000
Cash in hand4,000 Interest received 800
Bills receivable44,000 Sundry Creditors 160,000
Carriage out3,600 Salaries 48,000
Required:
A. Pass necessary adjusting entries.(15 marks)
B. Prepare the Income statement of Hyper Star Tradersfor the year ending on
31st December,2009. (15 marks)
C. Prepare the Balance sheet of Hyper Star Traders as on31st December, 2009.
(10 marks)
Explanation / Answer
Your question is not complete, however I answered the samequestion and the extract is below : IncomeStatement Sales 924,000 Less: Return Inward -8,000 916,000 InterestReceived 800 Dividend 2,000 Commission Earned 2,000 Closing Stock 200,000 1,120,800 Opening Stock 120,000 Purchases 680,000 Less: Return Outward -4,800 675,200 Wages 45,200 Salaries 48,000 Insurance 2,800 Carriage Outward 3,600 Bank Service Charges 150 Interest On Loan 500 House rent Allowance 5,000 Bad Debts 5,000 Depreciation 40,000 945,450 Excess Of Income OverExpenditure 175,350 Balance Sheet Assets Cash 4,000 Bank (36000+2000-150-500) 37,350 S.Debtors 100000 Less Bad Debts -5000 95,000 Closing Stock 200,000 Bills Receivables 44,000 Plant 200000 Less: Depreciation -40000 160,000 Furniture 40,000 Long Term Investment 60,000 640,350 Liabilities Capital (280000 + 5000 HRA) 285,000 Excess Of Income…. 175,350 S.Creditors 160,000 Bills Payable 20,000 640,350 IncomeStatement Sales 924,000 Less: Return Inward -8,000 916,000 InterestReceived 800 Dividend 2,000 Commission Earned 2,000 Closing Stock 200,000 1,120,800 Opening Stock 120,000 Purchases 680,000 Less: Return Outward -4,800 675,200 Wages 45,200 Salaries 48,000 Insurance 2,800 Carriage Outward 3,600 Bank Service Charges 150 Interest On Loan 500 House rent Allowance 5,000 Bad Debts 5,000 Depreciation 40,000 945,450 Excess Of Income OverExpenditure 175,350 Balance Sheet Assets Cash 4,000 Bank (36000+2000-150-500) 37,350 S.Debtors 100000 Less Bad Debts -5000 95,000 Closing Stock 200,000 Bills Receivables 44,000 Plant 200000 Less: Depreciation -40000 160,000 Furniture 40,000 Long Term Investment 60,000 640,350 Liabilities Capital (280000 + 5000 HRA) 285,000 Excess Of Income…. 175,350 S.Creditors 160,000 Bills Payable 20,000 640,350Related Questions
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