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?

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

Example of statement of retained earnings, Q. Example of Statement of retai...

Q. Example of Statement of retained earnings? Statement of retained earnings The statement of retained earnings as you remind is a financial statement that summarizes the trans

Calculate the wacc, The capital structure of Wild West Inc. is as follows: ...

The capital structure of Wild West Inc. is as follows: - Debts: $5,000,000 (face value) bonds with coupon rate at 8.00% and current price at par -

Meaning of invoice?, Invoice is a text which haves the under mentioned deta...

Invoice is a text which haves the under mentioned details compulsorily. 1. Invoice Number 2. Name and address of the person 3. Invoice date Name and address of someone

Accounts show the amount of money owed to the firm, __________ accounts sho...

__________ accounts show the amount of money owed to the firm by customers. A. Supply B. Prepaid C. Receivables D. Payables

Efficiency variances , Jackson Corporation uses a standard cost system, con...

Jackson Corporation uses a standard cost system, concerned manufacturing overhead on the basis of machine hours. The company's overhead standards per unit are given below. Varia

Use the following information to answer questions, The Bayside Company uses...

The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually high. The corporate tax rate is also high this ye

Please use the following information to answer questions, Please use the fo...

Please use the following information to answer questions 4-5: Cash $10,000 Accounts Payable $7,000 Accounts Receivable $6,400 Mortgage Payable $65,000 Supplies $1,500 Long-

Accounting theory and practice 1st year mcom, Acid test ratio = 2.5, curre...

Acid test ratio = 2.5, current ratio = 1.5 net working capital = 10,00,000 fixed assets =? Share holder''s fund = 15,00,000 Stock inventory =? Bank overdraft =? Share capital =

Describe the accounting procedures, Q. Describe the accounting procedures? ...

Q. Describe the accounting procedures? The demand for college professors differ greatly by discipline. In fields such like Fine Arts, English, Philosophy and Psychology there i

Pre acquisiton dividend, on which shares pre acquisiton dividend received

on which shares pre acquisiton dividend received

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages