Financial Statement Examples
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Example # 1:
Following are the Adjusted Trial Balance related to Naeem & CO (Pvt.) Limited. Prepare Financial Statements (Income Statement, Statement of Owner Equity and Balance Sheet) for the year ended 31st March, 2017:
Solution:
Example # 2:
Prepare corrected Trial Balance, Adjustment Entries, Adjusted Trial Balance, Income Statement, Statement of Owner Equity and Balance Sheet (Informal 3 Financial Statements):
Adjustments:
- Salary due to his shop assistants on December 31, 2016 is Rs. 800.
- Rent includes Rs. 25,000 deposited as security (Debit Prepaid Rent).
- Loan from Mr. Ahmed Ali taken on July 01, 2016 carries simple interest at the rate of 10%.
- Inventory in the shop on December 31, 2016 is Rs. 35,000.
- Insurance Expense for the period September 1, 2016 to August 31, 2017.
Solution 1 : Correction of Trial Balance
Solution 2: Adjustments Entries
Solution 3: Adjustments Trial Balance
Solution 4: Income Statement (Informal)
Solution 5: Statement of Owner Equity (Informal)
Solution 6: Balance Sheet (Informal)
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References
Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.
Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.
Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.
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