Question

1 Exercise 2: Prepare balance sheets to determine the amount missing from each of the following columns of balances at 31 December 20X1: А Capital at I Jan 20X1 Profit for 20X1 Drawings during 20X1 Current liabilities Fixed assets Current assets 2,500 1,000 800 750 1.800 ? B £ 2.000 3,200 3,000 ? 1.750 850 с £ 3,000 ? 1,000 600 2.800 1,200 D f 4,000 5.700 4,900 1,300 ? 1.900 E F £ £ 3.800 ? 2.300 7,000 ? 4.500 1.700 2.100 3.700 8,500 1,600 3,500

Answer 1

Preparation of balance sheets to determine the amount missing from each of the columns balances at 31 dec 20×1:

BALNCE SHEET FOR COLUMN A:

Assets	£	Liabilities	£
Fixed assets	1800	Capital at Dec 31, 20×1	2700
Current assets	1650	Current laibilities	750
	3450		3450

*Capital at Dec 31, 20×1

= Capital at Jan 1, 20×1 + Net profit - Drawings

= 2500 + 1000 - 800

= 2700

*Current Assets (missing amount)

= Total capital & laibilities - fixed assets

= 3450 - 1800

= 1650

BALNCE SHEET FOR COLUMN B:

Assets	£	Liabilities	£
Fixed assets	1750	Capital at Dec 31, 20×1	2200
Current assets	850	Current laibilities	400
	2600		3450

*Capital at Dec 31, 20×1

= Capital at Jan 1, 20×1 + Net profit - Drawings

= 2000 + 3200 - 3000

= 2200

*Current liabilities (missing amount)

= Total assets - Capital as on Dec 31, 20×1

= 2600 - 2200

= 400

BALNCE SHEET FOR COLUMN C:

Assets	£	Liabilities	£
Fixed assets	2800	Capital at Dec 31, 20×1	3400
Current assets	1200	Current laibilities	600
	4000		4000

*Capital at Dec 31, 20×1

= Total assets - current laibilities

= 3450 - 400

= 2700

*Profit for 20×1 (missing amount)

= Total capiatl at Dec 31 + Drawings - Total capital at jan1

= 2700 + 1000 - 3000

= 700

BALNCE SHEET FOR COLUMN D:

Assets	£	Liabilities	£
Fixed assets	4200	Capital at Dec 31, 20×1	4800
Current assets	1900	Current laibilities	1300
	6100		6100

*Capital at Dec 31, 20×1

= Capital at Jan 1, 20×1 + Net profit - Drawings

= 4000 + 5700 - 4900

= 4800

*Fixed Assets (missing amount)

= Total capital & laibilities - current assets

= 6100 - 1900

= 4200

BALNCE SHEET FOR COLUMN E:

Assets	£	Liabilities	£
Fixed assets	3600	Capital at Dec 31, 20×1	3500
Current assets	1600	Current laibilities	1700
	5200		5200

*Capital at Dec 31, 20×1

= Total aseets - current liabilities

= 5200 - 1700

= 3500

*Drawings during 20×1 (missing amount)

= Capital as on jan1, 20×1 + Net profit - capital as on Dec 31, 20×1

= 3800 + 2300 - 3500

= 2600

BALNCE SHEET FOR COLUMN F:

Assets	£	Liabilities	£
Fixed assets	8500	Capital at Dec 31, 20×1	9900
Current assets	3500	Current laibilities	2100
	12000		12000

*Capital at Dec 31, 20×1

= Total assets - current liabilities

= 12000 - 2100

= 9900

*Capital as on Jan 1, 20×1 (missing amount)

= Capital as on Dec31, 20×1 + Dividends - Net profit

= 9900 + 4500 - 7000

= 7400

______×_______

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