Balance sheet preparation
This query is : Resolved
03 May 2019
Hi,
Supoose Mr. A has started business with capital of Rs.1 Lac and invested in purchasing stock for his shop.
He almost invested his capital in purchasing stocks only. How record this entry in balance sheet.
As liability side is showing greater amount than assets side.
PURCHASE 200000
SALES 230000
CLOSING STOCK 48000
MISC. EXPENSES 39000
NET PROFIT 79000
OTHER INCOMES 40000
CAPITAL 100000
FURNITURE 15000
CASH 31000
NET PROFIT 79000
CLOSING STOCK 48000
DIFFERENCE 85000
WHAT IS MISSING IN THIS BALANCE SHEET , PLEASE SUGGEST ...
Supoose Mr. A has started business with capital of Rs.1 Lac and invested in purchasing stock for his shop.
He almost invested his capital in purchasing stocks only. How record this entry in balance sheet.
As liability side is showing greater amount than assets side.
PURCHASE 200000
SALES 230000
CLOSING STOCK 48000
MISC. EXPENSES 39000
NET PROFIT 79000
OTHER INCOMES 40000
CAPITAL 100000
FURNITURE 15000
CASH 31000
NET PROFIT 79000
CLOSING STOCK 48000
DIFFERENCE 85000
WHAT IS MISSING IN THIS BALANCE SHEET , PLEASE SUGGEST ...
CA Gyati Gupta
(Expert)
03 May 2019
Dear Gurdeep,
You are certainly missing the amount of creditors on Liabilities Side.
As the figures are provided by you, Capital stands out to be Rs. 1,00,000 which means available cash/Bank was Rs. 1Lac , so how can the purchases be made, furniture be bought in excess of Rs. 1,00,000 without getting credit from your suppliers.
The Balance amount should be adjusted via "Creditors For Goods" and "Creditors for Capital Goods" head.
I hope the concept is clear to you :)
You are certainly missing the amount of creditors on Liabilities Side.
As the figures are provided by you, Capital stands out to be Rs. 1,00,000 which means available cash/Bank was Rs. 1Lac , so how can the purchases be made, furniture be bought in excess of Rs. 1,00,000 without getting credit from your suppliers.
The Balance amount should be adjusted via "Creditors For Goods" and "Creditors for Capital Goods" head.
I hope the concept is clear to you :)
Message likes :
2 times
03 May 2019
Thanks...Kindly find the below all calculations i am unable to find which point is missing in this balance sheet.
PURCHASE 200000 SALES 230000
CLOSING STOCK 48000
MISC. EXPENSES 39000
NET PROFIT 79000
OTHER INCOMES 40000
CAPITAL 100000
FURNITURE 15000
CASH 31000
NET PROFIT 79000
CLOSING STOCK 48000
DIFFERENCE 85000
PURCHASE 200000 SALES 230000
CLOSING STOCK 48000
MISC. EXPENSES 39000
NET PROFIT 79000
OTHER INCOMES 40000
CAPITAL 100000
FURNITURE 15000
CASH 31000
NET PROFIT 79000
CLOSING STOCK 48000
DIFFERENCE 85000
KAVIRAJA ADDANGADI
(Expert)
04 May 2019
Depreciation is missing, debtor and creditor not shown? Cash Balance 31000/ to be verify correctness of Cash and bank balance
Your working capital is equal to Net profit, where is your cash balance of capital introduced? 100000/- Out of which Exps to furniture 15000/ different 85000/- which is not reflected in cash, Debtors?
Your working capital is equal to Net profit, where is your cash balance of capital introduced? 100000/- Out of which Exps to furniture 15000/ different 85000/- which is not reflected in cash, Debtors?
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