Question Title: :: accounting

Timestamp :: 7/12/2015 3:07:20

Name :: anuradha gupta


Your Country :: india

Question Title: :: accounting

Your Country :: india

Explain your question in detail :: You are presented with the following
statement of financial position, which is an incorrect version. Assuming
the accounts and amounts are correct, prepare the statement of financial
position, making the necessary corrections. (2 marks)

Current Assets $ $
Cash at bank 9,000
Accounts payable 11,000
Plant and machinery 26,000
_______
Total current assets 46,000
Non-current asset:
Inventory 15,000
Asset revaluation increment 20,000
Motor vehicles 18,000
_______
Total Non-current assets 53,000
_______
Total assets 99,000
=======
Current liabilities:
Accounts receivable 6,000
Prepayments 1,000
______
Total Current liabilities 7,000
Non-current liabilities:
Bank overdraft 14,000
Land and Building 50,000
Loan 10,000
______
Total Non-current liabilities 74,000
Owners' equity:
Opening balance 40,000
Less profit 32,000
Plus drawings 10,000
______
18,000
_______
Total liabilities and owners' equity 99,000
======
And what does this statement tell you about the financial position of the
business? (3 marks)


Category :: Teaching