Calculate the profit using balance sheet, Accounting Basics

Part 1

(a) Name and describe the three concepts that form the basis of double entry bookkeeping, and explain how they form the basis of double entry bookkeeping.

(b) How does profit fit into the accounting equation?

(c) What is the purpose of double entry bookkeeping?

Part 2

Alex Bisset started in business on 1 July 2011. His trial balance as at 30 June 2012 was as follows:

Alex Bisset trial balance as at 30 June 2012

                                                                     DR          CR

                                                                     £               £

Opening capital                                                             10,000

Capital contributed during the year                                   6,000

Drawings                                                 3,000

Bank loan                                                                     5,000

Non-current assets                                 20,000

Receivables control                                 7,250

Cash                                                     4,500

Payables control                                                           6,750

Sales                                                                         50,000

Purchases                                          35,000

Other expenses                                   8,000

                                                        77,750                77,750

Calculate profit earned during the period using both the balance sheet approach and the income statement approach to income determination.

Posted Date: 3/8/2013 12:59:53 AM | Location : United States







Related Discussions:- Calculate the profit using balance sheet, Assignment Help, Ask Question on Calculate the profit using balance sheet, Get Answer, Expert's Help, Calculate the profit using balance sheet Discussions

Write discussion on Calculate the profit using balance sheet
Your posts are moderated
Related Questions
Debtors are the major role of the business. He is the whole back bone of the business. The goodwill of the concern is in the hands of debtors because he is the person who takes our


Please help journalize: -On January 1, 2017 Harmony issued 1,500 shares of $22 par, 8% preferred stock for $43,700. -On January 1, 2017 Harmony also issued 2,000 shares of common s

can a buyer still avail the 2% discount if he/she partially paid the accounts receivable at the 5th day and the full payment is on the 10th day of the given discount period in th

Determine about the revenue section Revenue section provides a figure for net sales, which is balance of the Sales account, less the balances of contra sales accounts. (Sales -

Q. Explain about Gross margin method? The steps in computing ending inventory under the gross margin method are - Estimate gross margin based on net sales using the similar

Desrocher Ltd. issued an instalment note on January 1, 2014 (with a required yield of 9%), in exchange for land that it purchased from Safayeni Ltd. Safayeni's real estate agent

A recent cash budget showed estimated cash receipts of $159,000, estimated cash disbursements of $155,000, and a desired ending cash balance of $6,000, with no borrowing of funds

Q. What do you mean by Equities? Assets were described earlier as the things of value owned by the business or the economic resources of the business. Equities are every claims

The cash records and bank statement for the month of May for Diaz Entertainment are shown below. Prepare the bank reconciliation and record cash adjustments (LO5) Additi