Calculate the profit using balance sheet, Accounting Basics

Assignment Help:

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.


Related Discussions:- Calculate the profit using balance sheet

Income statement , Astra Company sells financial calculators and offers ins...

Astra Company sells financial calculators and offers instruction on their use. During its first year it expects to sell 3000 calculators at $30 each and offer 5000 hours of instruc

Accounting concepts, In earlier section, we had illustrated accounting as t...

In earlier section, we had illustrated accounting as the language of business. Along with language, accounting has several dialects. There are dissimilarities in terminology. In de

Explain about the petty cash, Explain about the Petty Cash Petty Cash ...

Explain about the Petty Cash Petty Cash It is a small amount of money which is kept in the office for making small expenditures. ($10, $25, $50, etc.) Business will conclude

Describe about chain discount, Q. Describe about chain discount? Occasi...

Q. Describe about chain discount? Occasionally the list price of a product is subject to several trade discounts this series of discounts is a chain discount. Chain discounts s

Bank reconciliation statement, even after preparing BRS why does balance as...

even after preparing BRS why does balance as per cash book and balance as per pass book do not tally?

Biology, While studying evolution, a student comes across a cladogram that ...

While studying evolution, a student comes across a cladogram that includes clades like amphibia, reptilia, aves, and mammalia. What must be the basal clade?

What is customer master record?, A Customer Master Record is a permanent re...

A Customer Master Record is a permanent record that haves key information about a business partner or a material. This information must be entered into the system before any transa

Define purchase discounts and purchase returns, Q. Define purchase discount...

Q. Define purchase discounts and purchase returns? Two general deductions from purchases are (a) purchase discounts and (b) purchase returns and allowances. In the general ledg

Wendell corporation exchanged an old truck, Wendell Corporation exchanged a...

Wendell Corporation exchanged an old truck and $25,500 cash for a new truck. The old truck had a book value of $6,000 (original cost of $25,000 less $19,000 in accumulated depre

Bank reconciliation, The cash records and bank statement for the month of M...

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

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd