Table of Content

Table of Content
Acknowledgement......................................................................................................................2
Table of Content.........................................................................................................................3
Record business transactions using double entry book-keeping, and be able to extract a trial
balance........................................................................................................................................6
Record business transactions using double entry book-keeping, and be able to extract a trial
balance. (P1)...........................................................................................................................6
Record business transactions using double entry book-keeping, and be able to extract a
trial balance.........................................................................................................................6
1.0. Financial Accounting......................................................................................................7
1.1. Definition of Financial Accounting.............................................................................7
1.2. Financial Statement.....................................................................................................7
1.3. Income Statement........................................................................................................7
1.3.1. Formula of the Income Statement........................................................................7
1.4. Balance Sheet..............................................................................................................7
1.4.1. Formula of the Balance Sheet..............................................................................7
1.5. Cash Flow Statement...................................................................................................8
1.6. Statement of retained earning......................................................................................8
Apply the double entry book-keeping system of debits and credits for above given
transactions in general ledger...........................................................................................12
Produce a trial balance applying the use of the balance off rule to complete the ledger.....15
Produce a trial balance applying the use of the balance off rule to complete the ledger..15
02. Activity - 02.......................................................................................................................15
2.1. Part (B) - Partnership.................................................................................................17
2.3. Part (D) – Cash Flow Statement................................................................................28
2.4. Part (E).......................................................................................................................30
Definition of Balance Sheet..............................................................................................30
Definition of Income Statement........................................................................................30
Definition of Cash Flow...................................................................................................30
03. Activity 03. Prepare bank reconciliations..........................................................................32
3.1. Part (A) Requirement:...................................................................................................32
3.2. Part (B)..........................................................................................................................33
04. Activity 04. Reconcile control accounts and clear suspense accounts...............................34
1
References................................................................................................................................38
2
trial balance.
trial balance. (P1)
trial balance
XYZ PLC
Journal Entries
Dr Cr
Date Description
(Rs.) (Rs.)
D
1-Jul Cash r 500,000.00
D
Computers r 100,000.00
C
Capital r 600,000.00
(Owner invested to the company)
D
2-Jul Office rental r 15,000.00
C
Cash r 15,000.00
(Paid the monthly office rental)
D
4-Jul Additional equipment r 12,000.00
C
Creditor account r 12,000.00
(Purchased additional equipment on credit)
D
8-Jul Cash r 32,000.00
C
Service income account r 32,000.00
(Completed client works and get paid)
D
10-Jul Debtor account r 27,000.00
C
(Completed client works and send the bill)
D
12-Jul Additional equipment r 8,000.00
Cash C 8,000.00
3
r
(Purchased additional equipment on cash)
D
15-Jul Wages account r 6,200.00
C
Cash r 6,200.00
(Wages paid to assistant for 15 days)
D
18-Jul Cash r 15,000.00
C
Debtor account r 15,000.00
(Collect cash from debtors)
D
25-Jul Creditor account r 12,000.00
C
Cash r 12,000.00
(Settled the liabilities of purchasing
equipment)
D
28-Jul Drawings account r 500.00
C
Cash r 500.00
(Owner withdrawal for personal usage)
D
30-Jul Cash r 40,000.00
D
Debtor account r 40,000.00
C
(80,000 sales and client paid only for 50%)
D
31-Jul Wages account r 7,000.00
C
Cash r 7,000.00
(Wages paid to assistant for 15 days)
D
31-Jul PLDT account r 1,800.00
C
Cash r 1,800.00
(Paid PLDT payment)
D
31-Jul Meralco account r 3,800.00
C
Cash r 3,800.00
(Paid Meralco payment)
4
Apply the double entry book-keeping system of debits and credits for above given
transactions in general ledger
Cash Book
XYZ PLC
Amount
Date Description Amount (LKR) Date Description
(LKR)
1-Jul Capital 500,000.00 2-Jul Office rental 15,000.00
8-Jul Sales income 32,000.00 12-Jul Additional equipment 8,000.00
18-
Jul Debtors 15,000.00 15-Jul Wages 6,200.00
30-
Jul Sales income 40,000.00 25-Jul Creditor account 12,000.00
28-Jul Drawings 500.00
30-Jul Wages 7,000.00
31-Jul PLDT account 1,800.00
31-Jul Maralco account 3,800.00
Balance C/D 532,700.00
587,000.00 587,000.00
Balance B/F 532,700.00
Capital A/C
Date Description Amount (LKR) Date Description Amount (LKR)
1-Jul Cash 500,000.00
01-Jul Computers 100,000.00
600,000.00 Balance B/F 600,000.00
Computer A/C
1-Jul Capital 100,000.00 Balance C/D 100,000.00
100,000.00 100,000.00
Office rental A/C

2-Jul Cash 15,000.00 Profit and loss 15,000.00
15,000.00 15,000.00
5

Additional equipment A/C

4-Jul Creditor account 12,000.00 Balance C/D 20,000.00
12-Jul Cash 8,000.00
20,000.00 20,000.00
Creditor A/C
Dat
Date Description Amount (LKR) Description Amount (LKR)
e
25-Jul Cash 12,000.00 4-Jul Additional equipment 12,000.00
12,000.00 12,000.00
Service income A/C

Profit or loss 139,000.00 8-Jul Cash 32,000.00
10-Jul Debtor 27,000.00
30-Jul Cash 40,000.00
30-Jul Debtor 40,000.00
139,000.00 139,000.00
Debtor A/C
10-Jul Sales income 27,000.00 18-Jul Cash 15,000.00
30-Jul Sales income 40,000.00 31-Jul Balance C/D 52,000.00
67,000.00 67,000.00
6
Wages A/C
15-Jul Cash 6,200.00 Balance C/D 13,200.00
31-Jul Cash 7,000.00
13,200.00 13,200.00
Drawings A/C
28-Jul Cash 500.00 Balance C/D 500.00
500.00 500.00
Balance B/F 500.00
PLDT bill A/C

31-Jul Cash 1,800.00 Profit or loss 1,800.00
1,800.00 1,800.00

Meralco bill A/C

31-Jul Cash 3,800.00 Profit or loss 3,800.00
3,800.00 3,800.00

Produce a trial balance applying the use of the balance off rule to complete
the ledger.
Produce a trial balance applying the use of the balance off rule to complete the ledger.
02. Activity - 02
Activity 02. Prepare final accounts for sloe traders, partnerships and limited companies
in according with appropriate principles, conventions and standards.
7
You are required to prepare following –
(a) Statement of Comprehensive Income for the year ended 31st March 2019.
(b) Statement of Financial position as at 31st March 2019.
2.1. Part (A) – Sole Proprietorship

Saman Trading,
Income Statement for the month ending March 2019
Sales 71,000,000.00
Less Closing Stock (30,800,000.00)
40,200,000.00
Provision 986,000.00
Gross Profit 41,186,000.00
Administrative Expenses
Insurance Expenses 2,600,000.00
Telephone and Electricity Bills 8,310,000.00
Depreciation of Building 2,000,000.00
Depreciation of Motor vehicles 1,760,000.00
Depreciation of Office Equipment 660,000.00
Salary and Wages 4,300,000.00 (19,630,000.00)
Sales & Distribution Expenses

Sales Commission 13,000,000.00 (13,000,000.00)

Finance & Other Expenses
Bank Interest 2,660,000.00

Bad Debts 300,000.00 (2,960,000.00)
Net Profit 5,596,000.00
8
Financial Statement as at 31.03.2019
Non-Current Assets LKR (,000) LKR (,000) LKR (,000)

Land 11,000.00 11,000.00
Building 40,000.00 (12,000.00) (12,000.00)
Motor vehicle 8,800.00 (4,640.00) 4,160.00
Office Equipment 5,500.00 (1,740.00) 3,760.00
46,920.00
Current Assists
Closing stock 6,900.00
Debtors 12,700.00
Provisions for doubtful debts(-) (254.00)
Net receivables 12,446.00
Prepaid Insurance 1,060.00
Cash in hand 5,240.00 25,646.00
72,566.00

Capital 28,000.00
Drawings (2,400.00)
Net profit 5,596.00 3,196.00 31,196.00

Non Current liabilities
Bank loan 19,000.00

Current liabilities
Creditors 15,200.00
Payable electricity 710.00
Payable interest 2,660.00
Bank overdraft 3,800.00 22,370.00 41,370.00
72,566.00

2.1. Part (B) - Partnership
The summarized trial balance of ABN Associates (Partnership Business) as at 31st March
2018 is given below
 Requirement
Prepare the financial statements for a partnership including appropriation accounts
9
Trading Account
Sales 3,800,000.00
Cost of Sales (1,780,000.00)
2,020,000.00
Other Income 50,000.00
2,070,000.00
Operational Expenses 850,000.00
Depreciation for the year 180,000.00
Nimal's Loan Interest 40,000.00 (1,070,000.00)
Net Profit 1,000,000.00
Intrest of Capital
Amal 50,000.00
Bimal 40,000.00
Nimal 40,000.00 (130,000.00)
870,000.00
Share of Profit
Amal 348000.00
Bimal 261000.00
Nimal 261000.00 (870,000.00)
-
10
BALANCE SHEET
Non-Current Assets
Property, Plant & Equipment 850,000.00 (180,000.00) 670,000.00
Current Assets
Inventory 585,000.00
Trade Recivable 280,000.00
Cash at Bank 500,000.00 1,365,000.00
2,035,000.00

Capitals and Liabilities
Capital Accounts
Amal 500,000.00
Bimal 400,000.00
Nimal 400,000.00 1,300,000.00

Amal 128,000.00
Bimal 1,000.00
Nimal 256,000.00 385,000.00 1,685,000.00

Current Liabilities
Trade Payable 150,000.00

Non-Current Liabilities
Nimal's Loan 200,000.00
2,035,000.00
Current Accounts
Amal Bimal Nimal Amal Bimal Nimal
BBF 125,000.00 85,000.00 BBF 225,000.00
Drawing Drawing
s 275,000.00 175,000.00 s 50,000.00 40,000.00 40,000.00
Drawing Drawing
s 120,000.00 s 40,000.00
Drawing
s 100,000.00 348,000.00 261,000.00 261,000.00

B/C/D 128,000.00 1,000.00 256,000.00
623,000.00 301,000.00 341,000.00 623,000.00 301,000.00 341,000.00
B/C/F 128,000.00 1,000.00 256,000.00
11
Capital Accounts
Amal Bimal Nimal Amal Bimal Nimal
500,000.0
BBF 0 400,000.00 400,000.00
500,000.0
B/C/D 0 400,000.00 400,000.00
500,000.0 500,000.0
0 400,000.00 400,000.00 0 400,000.00 400,000.00
500,000.0
B/C/F 0 400,000.00 400,000.00
Wiskam PLC
Comprehensive Income Statement
Sales 19,300,000.00
Sales Return
19,300,000.00
Cost of Sales 4 (11,600,000.00)

Gross Profit 7,700,000.00

Other Income
Received Discount 120,000.00 120,000.00

7,820,000.00

Expenses
Administrative Expenses 13 3,745,000.00
Selling and Distribution Expenses 14 230,000.00
Financial Expenses 15 220,000.00

330,000.0
Other Expenses 16 0 (4,525,000.00)
Profit Before Tax 3,295,000.00
Income Tax (220,000.00)
Profit After Tax 3,075,000.00
Other comprehensive income
15,000,000.0
Building Revolution Profit 5 0
Revolution Loss (700,000.00) 800,000.00
Total Comprehensive Income 3,875,000.00

12
2.2. Part (C) – Limited Liability Company
Requirement
Prepare final accounts from given trial balance figures
Statement of Changing of Equity

Share Revolution General Retained
Capital Reserve Reserve Earning Total
700,000 7,500,000.0 18,200,000
Balance 01/04/2014 10,000,000.00 .00 0 .00
2,000,000 (2,000,000.0
Capitalizing Reserve .00 0) -
Transfer to General 300,000.0 (300,000.0
Reserve 0 0) -
(500,000.0 (500,00
Dividends Paid 0) 0.00)
Comprehensive 800,000 3,075,000.0 3,875,000
Income .00 0 .00
300,000.0
12,000,000.00 1,500,000.00 0 7,775,000.00 21,575,000.00
13
Note 6- Property, Plant and Equipment
Land Building Motor Vehicle Computer system New Machines Total
Opening Balance 16,000,000.00 5,000,000.00 4,200,000.00 600,000.00 25,800,000.00
Acquisition 400,000.00 1,500,000.00 1,900,000.00
Revaluation (1,000,000.00) 1,500,000.00 500,000.00
Transfer of Accumulated 2,000,000.00 2,000,000.00
Depreciation on Revaluation
15,000,000.00 8,500,000.00 4,200,000.00 1,000,000.00 1,500,000.00 30,200,000.00

Provision for Depreciation
1,500,000.00 1,260,000.00 120,000.00 2,880,000.00
Depreciation for the year
10% 500,000.00 420,000.00 80,000.00 150,000.00 1,150,000.00
Transfer to Disposal (2,000,000.00) -2,000,000.00
1,680,000.00 200,000.00 150,000.00 2,030,000.00

Net Book Value 15,000,000.00 4,500,000.00 2,520,000.00 800,000.00 1,350,000.00 24,170,000.00
14
Leasing Plane Year 1 Year 2 Year 3 Year 4 Full Amount
300,000. 300,00 300,00
Payment 00 0.00 300,000.00 0.00 1,200,000.00
100,000. 100,00 100,00
Interest 00 0.00 100,000.00 0.00 400,000.00
1,600,000.00

Payment 1,200,000. Payable 300,00
Without Interest 00 Installment 0.00
300,000. Payable 100,00
Down Payment 00 Interest 0.00
1,500,000.
Cost of Machine 00
NOTES
1. The cost of inventory as at 31.03.2015 has been valued at First in First out (FIFO ) Method
2. Allocations of Doughtful Debts
Trade Receivable 1,240,000.00 Doughtful Debts 120,000.00

Previous
Bankrupts (40,000.00) Provisions (100,000.00)
Actual Receivables 1,200,000.00 20,000.00

Doughtful Debts 10 % 120,000.00
Net Receivables 1,080,000.00
3. Advertising Expenses
Prepaid Advertising 200,000.00
Current Year Advertising Expense (100,000.00)
100,000.00
4. Cost of Sales 12,000,000.00
15
Computer Purchsing (400,000.00)
Real Cost of Sales 11,600,000.00
5. Lease Period 4 Years
Down Payment 300,000.00
Bank Loan 1,200,000.00
Installment 400,000.00 100,000.00
7. Land 16,000,000.00
Revolution Loss (1,000,000.00)
Actual Cost of Land 15,000,000.00

Revolution Surplus 700,000.00
Revolution Loss (1,000,000.00)
Revolution Loss (300,000.00)
8. Building Revalued 4,500,000.00
9. Income Tax 220,000.00
Tax Paid (145,000.00)
Tax Payable 75,000.00

1,800,000.0
10. Salary and Wages 0

Employee Contribution
to the EPF 10%
10% 200,000.0
16
0
1,800,000.0
90% 0
2,000,000.0
100% 0
2,000,000.0 200,000.0
Gross Salary 0 Salary Payable 0
300,000.0 300,000.0
EPF 15% 0 EPF Payable 0
60,000.0 60,000.0
ETF 3% 0 ETF Payable 0
17
11.Capatalized Retained Earnings 1/5 th of the ordinary shares

Ordinary Shares 10,000,000.00
Capitalized Retained Earning 2,000,000.00
12,000,000.00
12. Administrative Expenses

Salary and Wages 2,000,000.00
EPF and ETF 360,000.00
Director's Fee 175,000.00
Depreciation 1,150,000.00
Audit Fee 60,000.00
3,745,000.00
13. Selling and Distribution Expenses

Doughtful Debts 20,000.00
Bad Debts 40,000.00
Advertising 100,000.00
Sales Commission 20,000.00
Discount Allowed 50,000.00
230,000.00
14. Financial Expenses

Interest 120,000.00
Bank Loan 100,000.00
Lease Interest 220,000.00
15. Other Expenses

Donations 30,000.00
Land Revolution Loss 300,000.00
330,000.00
18
2.3. Part (D) – Cash Flow Statement
Requirement
Prepare Cash flow statement of Ruba PLC. Find the cash balance for the year ended by
using relevant accounting formats.
Statement of Cash Flow of Ruba PLC

(LKR) (LKR)
Operating Activities
Profit before tax 2,265,000.00
Depreciation 300,000.00
Interest Expense 760,000.00
(75,000.00
Interest Income )
Computer disposal loss 50,000.00 1,035,000.00
3,300,000.00
Adjustments working capital
Decrease stock 500,000.00
(800,000.00
Increase Debtors )
Increase Creditors 110,000.00 (190,000.00)
Cash used in operating expenses 3,110,000.00
(-) Interest paid (700,000.00)
(-) Interst tax paid (1,150,000.00)
Net cash from operating activities 1,260,000.00

Investing Activities
Receipts from disposal computers 70,000.00
(120,000.00
Purchase photocopy machine )
Received Interest 85,000.00
Net cash from investing activities 35,000.00

Financing activities
(655,000.00
Dividends )
Issue ordinary shares 500,000.00
Net cash from financing activities (155,000.00)
Net increase in cash and cash equivalents 1,140,000.00
Cash and cash equivalents 01/04/2014 300,000.00
Cash and cash equivalents 31/03/2015 1,440,000.00
19
Income tax
20
Balance
Cash 1,150,000.00 B/F 100,000.00
Balance Profit or
C/D 150,000.00 loss 1,200,000.00
1,300,000.00 1,300,000.00

Dividend
Balance
Cash 655,000.00 B/F 250,000.00
Balance Profit or
C/D 200,000.00 loss 605,000.00
855,000.00 855,000.00

Accured Interest
Balance
Cash 700,000.00 B/F 60,000.00
Balance Profit or
C/D 120,000.00 loss 760,000.00
820,000.00 820,000.00

Interest Receivable
Balance 700,000.
B/F 00 Cash 60,000.00
Profit or 120,000. Balance
loss 00 C/D 760,000.00
820,000.00 820,000.00
21
Computer disposed
Cost 120,000.00
Loss (50,000.00)
Scrap value 70,000.00
2.4. Part (E)
Compare the essential features of each financial statement to analyze the differences
between them in terms of purpose, structure, and content.
Balance sheet, income statement, cash flow
Definition of Balance Sheet
Balance sheet is a financial statement which reports an assets, liabilities and shareholders’
equity in the company at a particular point in time period. The balance sheet offers an origin
for calculating rates of return and assessing the capital structure and also the balance sheet
cannot reveal the actual assets market value in the business. (Investopedia, 2022)
Definition of Income Statement
Income statement is the important financial statement which used for reporting the financial
performance within the particular accounting time frame. The income statement is mainly
focus on the revenue and expenses of the company over a particular accounting period.
(Investopedia, 2022)
Definition of Cash Flow
Cash flow is a financial statement which offers aggregate data aboutthe all cash inflows
obtains from the ongoing operations and outside investment sources. The Cash flow is
included all cash outflow which pay for business activities and investment in particular
accounting time period. The company can planning the repayment of loans, schedule and
replacement of fixed assets by using the cash flow statement. As the result of using the cash
22
flow statement, the company can carrying out the efficient and effective management of cash
to the business success. (Investopedia, 2022)
Balance Sheet Income Statement Cash Flow Statement
Purpose To reporting an assets, To report the financial To identifying the all cash
liabilities and shareholders’ performance of the company inflows obtains from the
equity in the company at a within the particular accounting ongoing operations and
particular point in time period time frame outside investment sources
and highlighting the financial
point of the company.
Structure Accounting Form – Operating Activities +/-

Net Profit = Revenues –Expenses
Horizontal Presentation investing activities +/-
financing activities +/-
Report Form – noncash activities = Cash
Vertical Presentation
Assets = Liabilities + Equity
Content  Current Assets  Revenue  Cash from operating

activities
 Cost of Goods Sold (COGS)
 Non-Current Assets
 Gross Profit
 Current Liabilities
 Marketing, Advertising, and  Cash from investing
Promotion Expenses activities
 Non-Current Liabilities
 General and Administrative
 Equity
(G&A) Expenses
 Cash from financing
 Depreciation & activities
Amortization Expense
 Operating Income
 Disclosure of
 Interest noncash activities
 Other Expenses
 Income Taxes
 Net Income
23
24
03. Activity 03. Prepare bank reconciliations
3.1. Part (A) Requirement:

Apply relevant accounting procedures to check the book balance with the bank statement
balance. You are required to provide relevant notes and extra calculations to support your
answer.
BANK ACCOUNT – Araliya Business

DR (LKR) CR(LKR)
Cheque Correction 900.00 Balance B/F 64,050.00
Debtors 40,300.00 Cheque Book Charges 400.00
Overdraft Interest 1,800.00
Bank Charges 450.00
Leasing 20,000.00
Creditors 12,000.00

98,700.00 98,700.00
BANK RECONCILATION - Araliya Business

LKR LKR
Connected Balance as per Cash Book (57,500.00)
UnpresentedCheque
Cheque No : 010253 95,000.00
Cheque No : 010262 16,500.00
Cheque No : 010284 21,500.00 133,000.00
75,500.00

Unrealized Cheque
Cheque No : 043250 4,500.00
Cheque No: 215412 33,500.00
Cheque No: 721210 16,000.00 (54,000.00)
Balance per Bank Statement 21,500.00
25
3.2. Part (B)
Requirement
(i) Prepare the adjusted cash book of Ahinsa (Pvt) Ltd for the month ended
31st March 2017.
(ii) Prepare the bank reconciliation statement as at 31st March 2017.
CASH BOOK -Ahinsa (Pvt) Ltd

LKR LKR
31-03-17 Dividend Received 15,000.00 Balance C/F 227,700.00
24,000.0
Record Adjustment 1,800.00 Payment Adjustment 0

262,200.00 262,200.00
BANK RECONCILATION--Ahinsa (Pvt) Ltd

ADD Connected Balance as per Cash Book (240,000.00)
UnpresentedCheques 522,000.00
522,000.00
LESS Deposited Cheques in Bank
Cheque No : 111201 50,000.00
Cheque No: 450222 60,000.00
Cheque No: 650108 82,000.00
(192,000.00)
90,000.00
26
04. Activity 04. Reconcile control accounts and clear suspense
accounts
Requirement
Explain the process taken to reconcile control accounts and clear suspense accounts using
given account examples.
 Provide relevant control accounts with reconciliation statements should calculate to
obtain the correct creditor balance.
CREDITOR CONTROL ACCOUNT – XYZ Company`

DATE DESCRIPTION DR DATE DESCRIPTION CR
Opening
Payment 566,000.00 01-Mar Balance 81,000.00
Purchase
Return 4,000.00 31-Mar Purchase 603,000.00
Discount 8,000.00 Cash Sale 20,000.00

B/C/D 126,000.00
704,000.00 704,000.00
B/B/F 126,000.00

ADJUSTED CREDITOR CONTROL ACCOUNT– XYZ Company

DATE DESCRIPTION DR DATE DESCRIPTION CR
Cash Sale 20,000.00 01-Mar B/B/F 126,000.00
31-Mar Adjustment 27,000.00
Suspend 12,000.00

B/C/D 145,000.00
165,000.00 165,000.00
B/C/F 145,000.00
27
CREDITOR CONTROL RECONCILATION
LKR LKR
145,000.0
Balance as per adjusted creditor control 0
ADD Discount Received 3,000.00
Unrecorded Debtor Note 4,000.00
7,000.0
0

LESS Unrecorded Purchase 12,000.00
(12,000.00
)
140,000.0
0
Asitha

Description Dr (LKR) Description Cr (LKR)
25,000
Payment 130,000.00 Opening Balance .00
160,000
Discount 6,000.00 Purchase .00
B/C/D 49,000.00
185,000.00 185,000.00
49,000
B/C/F .00

Visith
44,000
300,000
Purchase Return 4,000.00 Purchase .00
B/C/D 40,000.00
344,000
344,000.00 .00
40,000
B/C/F .00
28

Lasith
12,000
120,000
Discount 2,000.00 Purchase .00
B/C/D 10,000.00
132,000
132,000.00 .00
10,000
B/C/F .00

Rakitha
50,000
Payment 16,000.00 Purchase .00

B/C/D 34,000.00
50,000
50,000.00 .00
34,000
B/C/F .00

MUDITHA
12,000
Purchase .00

B/C/D 12,000.00
12,000
12,000.00 .00
12,000
B/C/F .00

603,000
Purchase .00

B/C/D 603,000.00
603,000
603,000.00 .00
603,000
B/C/F .00

29
SUSPEND ACCOUNT
27,000
Creditor Control 27,000.00 Balance .00
Creditor Control 12,000.00 Balance 12,000.00

B/C/D -
12,000
12,000.00 .00
B/C/F -
CREDITOR LEDGER
Asitha LKR 49,000.00
Visith LKR 40,000.00
Lasith LKR 10,000.00
Rakitha LKR 34,000.00
Muditha LKR 12,000.00
LKR 145,000.00
30
Conclusion
31
References
Investopedia. (2022). Balance Sheet Definition. [online] Available at:

https://www.investopedia.com/terms/b/balancesheet.asp [Accessed 08 Aug. 2022].
Investopedia. (2022). Income Statement Definition. [online] Available at:
https://www.investopedia.com/terms/i/incomestatement.asp [Accessed 08 Aug. 2022].
Investopedia. (2022). Cash Flow Statement. [online] Available at:
https://www.investopedia.com/terms/c/cashflowstatement.asp [Accessed 08 Aug. 2022].
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Office rental A/C

Additional equipment A/C

Service income A/C

PLDT bill A/C

Meralco bill A/C

2.1. Part (A) – Sole Proprietorship

Sales & Distribution Expenses

Non-Current Assets LKR (,000) LKR (,000) LKR (,000)

2.1. Part (B) - Partnership

Cost of Sales 4 (11,600,000.00)

Received Discount 120,000.00 120,000.00

Administrative Expenses 13 3,745,000.00

Selling and Distribution Expenses 14 230,000.00

Financial Expenses 15 220,000.00

Statement of Changing of Equity

2. Allocations of Doughtful Debts

Trade Receivable 1,240,000.00 Doughtful Debts 120,000.00

Actual Receivables 1,200,000.00 20,000.00

Doughtful Debts 10 % 120,000.00

Net Receivables 1,080,000.00

Prepaid Advertising 200,000.00

Current Year Advertising Expense (100,000.00)

4. Cost of Sales 12,000,000.00

Real Cost of Sales 11,600,000.00

5. Lease Period 4 Years

Down Payment 300,000.00

Bank Loan 1,200,000.00

Installment 400,000.00 100,000.00

Revolution Loss (1,000,000.00)

Actual Cost of Land 15,000,000.00

Revolution Surplus 700,000.00

Revolution Loss (1,000,000.00)

Revolution Loss (300,000.00)

8. Building Revalued 4,500,000.00

9. Income Tax 220,000.00

Tax Paid (145,000.00)

Tax Payable 75,000.00

12. Administrative Expenses

13. Selling and Distribution Expenses

14. Financial Expenses

15. Other Expenses

Statement of Cash Flow of Ruba PLC

2.4. Part (E)

Balance sheet, income statement, cash flow

Definition of Balance Sheet

Definition of Income Statement

Definition of Cash Flow

Structure Accounting Form – Operating Activities +/-

Assets = Liabilities + Equity

Content  Current Assets  Revenue  Cash from operating

3.1. Part (A) Requirement:

BANK ACCOUNT – Araliya Business

Balance B/F 57,500.00

BANK RECONCILATION - Araliya Business

CASH BOOK -Ahinsa (Pvt) Ltd

Balance B/F 240,000.00