capital b f 95 000 90 000 add net profit 25 000 37 500 120 000 127 500 less drawings 1553139

Financial Accounting

EXERCISE

1. The financial statements published by the companies for the similar types of business as at 31st December 2011 are as follows:

BALANCE SHEET AS AT 31ST DECEMBER 2011

ABC LTD PQR LTD K K K K FIXED ASSETS Equipment at Cost 25,000 50,000 Less: Depreciation 20,000 5,000 15,000 35,000 CURRENT ASSETS Inventory 37,500 43,750 Accounts Receivable 62,500 50,000 Cash at Bank 12,500 6 250 112,500 100,000 Less: Current Liabilities 12,500 100,000 25,000 75,000 TOTAL ASSETS 105,000 110,000 Financed by Capital B/f 95,000 90,000 Add: Net Profit 25,000 37,500 120,000 127,500 Less: Drawings 15,000 17,500 105,000 110,000

International Training Institute

Page 64

Attachments:

Financial-Acc….pdf