Prepare a trial-balance for an organisation

Assignment Help Financial Accounting

Reference no: EM132313947

Subject- Financial Statements

Assessment – Written or Oral Questions

1. List some of the errors and discrepancies you might find when preparing financial reports.

2. Andre and Anton Plumbing Services Pty Ltd has sales of $825,000 over the financial year to June 30th 2013.Cost of goods sold was $260.000 and administrative and sales expense was $180,000. Depreciation was calculated at $65,000. Interest earnings were $15,000 and interest paid on loans was $35,000. The organisation is based in Australia for tax purposes. What is the Net Income for the Year Ending 30th June 2013?

Andre and Anton Plumbing Services Income Statement

For the Year Ending 30th June 2013

3. Prepare a Trial-balance for an organisation and determine the Net Profit figure. The following figures have been provided. Short-term loans payable $25,000, prepaid expenses $17,000, inventory $85,000, long-term loan payable $42,000, equipment $60,000, paid in capital $35,000, PAYG tax withheld $15,000, Accounts Receivable $185,000, Goodwill $15,000, Cash $60,000, Retained Earnings $50,000, Accounts Payable $15,000, Depreciation $95,000, Expenses payable $20,000 and Capital Stock $15,000.

Trial Balance	Debit (Dr)	Credit (Cr)


Net Profit (?)

4. The following information is given in respect of the business of K.Dunn:

Cash at Bank
01/07/12	Balance b/d	3,000	30/06/13	Accounts Payable	37,000
30/06/13	Accounts Rec	42,000		Cash Purchases	15,000
	Interest Received	1,000		Sundry Expenses	8,000
	Sale of Equipment	2,000		A Shiplock - Loan	5,000
	Capital - K Dunn	25,000		Drawings - K Dunn	15,000
	Cash Sales	25,000		Purchases of Equipment	12,000
			30/06/13	Balance c/d	6,000
		$98,000			$98,000

During the year, the Net Profit for the business was $11,800 after allowing for depreciation of $1,000. Loss on sale of equipment was $200.
Accounts Payable increased by $2,000 during the year; accounts receivable and inventories increased by $5,000 and $2,000 respectively.

Cash at Bank
Date	Details	Debit ($)	Credit ($)	Balance ($)
01/07/12	Balance b/d			3,000 Dr
30/06/13	Accounts Rec	42,000		45,000 Dr
	Interest Received	1,000		46,000 Dr
	Sale of Equipment	2,000		48,000 Dr
	Capital - K Dunn	25,000		73,000 Dr
	Cash Sales	25,000		98,000 Dr
	Accounts Payable		37,000	61,000 Dr
	Cash Purchases		15,000	46,000 Dr
	Sundry Expenses		8,000	38,000 Dr
	A. Shiplock - Loan		5,000	33,000 Dr
	Drawings - K Dunn		15,000	18,000 Dr
	Purchase of Equipment		12,000	6,000 Dr

Required: Prepare a Cash Flow Statement for the year ended 30 June 2013 and reconcile net profit to net cash from Operating Activities.

Cash Flow Statement of K Dunn for the year ended 30 June 2013
Cash Flows from Operating Activities: Receipts: Payments: Net Cash from Operating Activities Cash flows from Investing Activities: Receipts: Payments: Net Cash used in Investing Activities Cash Flows from Financing Activities: Receipts: Payments: Net Cash used in Financing Activities Net Increase in cash and cash equivalents Cash and cash equivalents 01 July 2012 Cash and cash equivalents 30 June 2013

Reconciliation of Net Cash from Operating Activities to Net Profit
Net Profit for the year Add: Non-Cash Items Changes in Current Assets and Current Liabilities Add: Increase in Current Liabilities (net) Increase in Accounts Payable Decrease in Accrued Expenses Less: Increase in Current Assets (net) Increase in Inventories Decrease in Prepaid Expenses Net Cash from Operating Activities

5. The following are the financial statements of Ben Goldfield & Co for the year ended 30th June 2013:

Income Statement for the Year Ended 30th June 2013
Sales - Cash	$1,000
- Credit	$2,500	$3,500
Less: Cost of Goods Sold
Opening Inventory	$500
Purchases	$2,000
	$2,500
Less: Closing Inventory	$600	$1,900
Gross Profit		$1,600
Less: Expenses		$1,000
Net Profit		$600
Balance Sheet as at 30th June 2013
Current Assets (including Inventory $600 & A/c's Rec $900	$1,500
Non-Current Assets	$2,000
Total Assets		$3,500
Current Liabilities (including Bank Overdraft $50)	$900
Non-Current Liabilities	$300
Total Liabilities		$1,200
Net Assets		$2,300

Owner's Equity
Capital 01/07/12	$1,700
Add Net Profit	$600	$2,300
		$2,300
Accounts Receivable 30 June 2013 was $900

Required: From the above information for Ben Goldfield & Co calculate:

a. Gross Profit Rate

b. Net Profit Rate

c. Current Ratio

d. Liquid Ratio

e. Inventory Turnover Rate

f. Accounts Receivable Collection Period

Reference no: EM132313947

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