Prepare:Statement of Financial Position as at 31st March 2022.

Financial statement

Assignment 2

1. On 31st March, 2022 the following Trial Balance was extracted from the books of Mr. Ben.

Debit Balances	Rs	Credit Balances	Rs.
Sundry Debtors	20,100	Capital	28,000
Drawings	3,000	Loan on Mortgage	9,500
Bills receivables	6,882	Rent received	250
Interest on Loan	300	Bill Payable	2,614
Cash at Bank	3,555	Sales	110,243
Motor Van	10,000	Sundry creditors	10,401
Stock on 1st April	6,839	Provision for bad debts	710
Cash in hand	2,050	Return outwards	1,346
Land and building	12,000
General expenses	3,489
Advertising expenses	3,264
Rent, rates and insurance	2,891
Salaries	9,097
Bad debts	525
Purchases	66,458
Return inwards	7,821
Carriage inwards	2,929
Carriage outwards	2,404
Total	163,604	Total	163,604

 

Adjustments:

(i). Closing stock is valued at Rs. 7,250

(ii). Depreciate Land and Building at 2%, Motor van at  15%

(iii). Salaries Rs. 750 and rates Rs. 350 are outstanding.

(iv). Goods costing Rs. 2,000 were taken by proprietor for private use, had been treated as credit  sales.

(v). Prepaid insurance Rs. 270.

(vi). Provision for Bad debts is to be maintained at 5% on Debtors.

(vii). Provide interest on loan on mortgage 8% p.a. for 6 months.

You are required to prepare:

(a). Statement of Comprehensive Income for the year ended 31st March 2022    (15  Marks)

 

(b). Statement of Financial Position as at 31st March 2022                                  (10 Marks)

 

(Total Marks 25)