Name

Usama Mazhar

Vu id

BC200410001

SATUSTION:

1. Net purchases to be presented in Income Statement.

Net purchase = Gross Profit - purchase return – Allowances – Discount

Net purchase = 50000-10000-0-0

Net purchase =40000 RS

2. Gross profit to be presented in Income Statement

Gross Profit = Sales Revenue

Gross Profit = Sales Revenue - Cost of goods sold

Gross profit = (Net sales - return inwards) - cost of goods sold

Gross profit = (85000 - 5000) - 35000

Gross profit = 80000 - 35000

Gross profit = 45000 Rs

3. Net Book Value of machinery to be presented in Balance Sheet

Net book value = original purchase cost - accumulated depreciation

Net book value = 100000 - (100000 x 15%)

Net book value = 100000 – 15000

Net book value = 85000 Rs

4. Value of debtors to be presented in Balance Sheet.

Opening stock 13000 Cash 12800

Credit sales 16800 Return inwards 5000

 Closing stock 12000

29800 29800

5. Owner’s equity to be presented in Balance Sheet.

Owners' equity = capital + net profit - drawings ………. (1)

Net profit = gross profit - financial expenses - administrative expenses – depreciation

Net profit = 45000 - 8000 – 5453 – 15000

Net profit = 16547

Put net profit in Equation (1) Owners' equity = 300000 + 16547 - 0

Owners' equity = 316547 Rs