Balance sheet tally

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Amit Lipare (Querist)
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10 November 2009 Dear all
kindly solve the quire its practical question which was ask in TCS final interview for General accounts post

Mr.X having his Vegetable selling Shop
total Sales is 2,30,000 purchase 95750
Expenses for the Year 25600
Cash balance at year ended 12750

Prepare Income and expenditure and Balance sheet for the Year 2007-08

Sandeep Kumar Sahu

Sandeep Kumar Sahu (Expert)
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11 November 2009 As there is no other information given, you need not to be worry about tallying the balance sheet. You can simply put 108650 as income over expenditure on the liability side and 12750 on asset side.

Alternatively if you want to tally the B/S, you can show 95900 as drawings on the liability side of the B/S to make income over expenditure to 12750. As from the question it is clearly seems that it is a proprietorship business you can show that much amount as drawing.

shakuntala chhangani

shakuntala chhangani (Expert)
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11 November 2009 as the opening information is not given, let us assume it as Nil. now, consider the following entries :
for sales:
Drs. A/c Dr. 2,30,000
To Sales A/c 2,30,000
for purchases:
Purchase A/c Dr. 95,750
To Crs. A/c 95,750
for expenses :
Expenses A/c Dr. 25,600
To Cash A/c (assumed) 25,600
since nothing is given about how much cash is collected from debtors and what is paid to creditors, let us assume that the creditors are paid fully.
for payment to creditors :
creditors A/c dr. 95,750
To Cash A/c 95,750
in the above two entries, we have shown total payment of Rs.1,21,350. In addition there is a closing cash balance of Rs. 12,750. it means that total Rs.1,34,100 must have been received from debtors.hence
for receipt from debtors:
Cash A/c Dr. 1,34,100
To Debtors A/c 1,34,100
it means that bal of drs. i.e 95,900 (2,30,000-1,34,100) will appear into the Balance Sheet.
in the question profit is Rs.1,08,650 which will be added to Nil opening capital. hence, liability side will show capital as 1,08,650. On the assets side cash bal. of Rs. 12,750 and Drs. of Rs. 95,900 will be shown and the Balance Sheet will tally. Alternatively, if you want to assume that the whole amount has been received from the Drs, then u can show Rs. 95,900 as drawings in which case instead of showing it on asset side it will be deducted from capital on liability side and your Balance sheet will tally at 12,750. it is simple... no. concentrate more on Journal entries. Thanks and Regards,
CA Shakuntala Chhangani

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