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Updating Financial Statements

1. Determine ...

Question

1. Determine if the following are assets, liabilities, revenues, expenses or none of the these: sales, debtors, creditors, salary to manager, discount to debtors, drawings by the owner.

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Solution

Kanika, the solution to your query is here.

Assets Liabilities Revenue Expenses

Debtors Creditors Sales Salary to Manager

Discount to Debtors

However, Drawings by Owners comes under Capital.

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Similar questions

Q. Determine if the following are assets, liabilities,revenues,expenses or none of the these; sales, debtors,creditors,salary to manager,discount to debtors,drawings by the owner.

Q. Classify the following into Assets, Liabilities, Capital, Expenses and Revenue:

(i) Land;	(ii) Investments;	(iii) Building;	(iv) Interest Received;
(v) Salary;	(vi) Bank Overdraft;	(vii) Debtors;	(viii) Creditors;
(ix) Bad Debts;	(x) Capital;	(xi) Depreciation;	(xii) Motor Vehicles;
(xiii) Freight;	(xiv) Wages;	(xv) Goodwill;	(xvi) Repairs.

Q. From the following records kept on single entry basis, prepare final accounts assuming that ratio of gross profit to sales is 25%:

	1-1-2018	31-12-2018
	₹	₹
Cash at Bank	1,400	1,800
Debtors	?	2,400
Stock	?	1,700
Fixed Assets	10,000	10,000
Creditors	1,600	?
Loan	1,000	800

Transactions during the year 2018:

	₹
Collections from debtors	9,300
Cash Sales	1,000
Credit Sales	9,000
Payment to Creditors	6,100
Cash Purchase	1,600
Credit Purchase	6,400
Drawings	1,000
Business Expenses	1,000
Discount Received	200
Discount Allowed	100

Q. Mr. Manoj keeps incomplete records. During the year 2014-15 the analysis of his cash book was as under:-

			(₹)		(₹)
Receipts from Debtors			6,20,200	Bank Overdraft (1-4-2014)	16,500
Cash Sales			2,08,000	Salaries	22,000
Additional Capital introduced			50,000	Rent	11,000
Miscellaneous receipts			1,800	Payment to Creditors	5,20,000
Bank Overdraft (31-3-2015)			2,500	Furniture purchased (1-10-2014)	75,000
				Cash Purchases	2,10,000
				General Expenses	8,000
				Drawings	20,000

			8,82,500		8,82,500

Assets and Liabilities as on:	1st April, 2014 ₹	31st March, 2015 ₹
Sundry Debtors	62,000	?
Sundry Creditors	46,000	30,000
Stock	58,000	72,000
Furniture	25,000	?

Other Informations:
(i) Credit sales during the year were ₹ 7,00,000
(ii) Sales Returns were ₹ 10,000
(iii) Discount allowed to debtors ₹ 8,400
(iv) Discount received from creditors ₹ 6,000
(v) Bad-debts written off during the year ₹ 11,400

Adjustments:
(i) Write off further bad-debts ₹ 2,000.
(ii) Provide 5% for doubtful debts and 2% for discount on debtors and creditors.
(iii) Charge 10% p.a. depreciation on furniture.
(iv) One month salaries and one month rent was outstanding.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2015 and a Balance Sheet as at that date.

Q. Question : From the following information ascertain the opening balance of sundry debtors and closing balance of sundry debtors and closing balance of sundry creditors

	(Rs)
Opening stock	$30, 000$
Closing stock	$25, 000$
Opening creditors	$50, 000$
Closing debtors	$75, 000$
Discount allowed by creditors	$1, 500$
Discount allowed to customers	$2, 500$
Cash paid to creditors	$1, 35, 000$
Bills payable accepted during the period	$30, 000$
Bills receivable received during the period	$75, 000$
Cash received from customers	$2, 20, 000$
Bill receivable dishonored	$3, 500$
Purchases	$2, 95, 000$

The rate of gross profit is

25 %

on selling price and out of the total sales Rs

85, 000

was for cash sales.
( Hint Total sales =

4, 00, 000 = 3, 00, 000 \times \frac{100}{75}

)

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