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Home Work Problem - 27072021

The document provides a list of 16 business transactions for a company during the month of May, including investing cash for common stock, paying rent and other expenses, providing and collecting payment for consulting services, purchasing equipment and supplies, and paying salaries and dividends. The task is to prepare a Profit & Loss Statement for May and a Balance Sheet at the end of May based on the equation method using these transactions.

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shubham hemane
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116 views1 page

Home Work Problem - 27072021

The document provides a list of 16 business transactions for a company during the month of May, including investing cash for common stock, paying rent and other expenses, providing and collecting payment for consulting services, purchasing equipment and supplies, and paying salaries and dividends. The task is to prepare a Profit & Loss Statement for May and a Balance Sheet at the end of May based on the equation method using these transactions.

Uploaded by

shubham hemane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Financial Accounting – Home work problem

Question 3 - From the following business transaction, prepare Profit & Loss Statement
for the month of May and Balance Sheet at the end of May based on equation method.

1. Hadi Ram invested Rs.40,000 cash in the company in exchange for its common stock
2. The company rented a furnished office and paid $2,200 cash for May’s rent
3. The company purchased Rs 1,890 of office equipment on credit
4. The company paid Rs 750 cash for this month’s cleaning services
5. The company provided consulting services for a client and immediately collected Rs
5,400 cash
6. The company provided Rs2,500 of consulting services for a client on credit on May
12
7. The company paid Rs750 cash for an assistant’s salary for the first half of this month
8. The company received Rs2,500 cash payment fo the services provided on May 12
9. The company provided Rs3,200 of consulting services on credit
10. The company received Rs3,200 cash payment for the services provided above
11. The company paid Rs1,890 cash for the office equipment purchased on May 3
12. The company purchased Rs80 of advertising in this month’s local paper on credit.
Cash paid in next month
13. The company paid Rs750 cash for an assistant’s salary for the second half of this
month
14. The company paid Rs. 800 cash for telephone bills, out of which Rs 300 belongs to
for the month of May.
15. The company paid Rs280 cash for this months utilities
16. The company paid Rs1400 cash in dividends to the owners.

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