Answered: Karie Auto Supplies is a soletrader…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 1PA: On June 30, Oscar Inc.s bookkeeper is preparing to close the books for the month. The accounts...

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Karie Auto Supplies is a soletrader enterprise which did not maintain full double entry records. The owner asked you an accounts clerk to find some missing figures for him. He provides the following balances:

Jan 1, 2020Dec 31, 2020

Building 1,000,000 1,0000,00

Fixtures and fittings 250,000 250,000

Loan 800,000 800,000

Stock 120,000 155,000

Bank 200,000 535,000

Receivables 85,000 100,000

Payables 56,000 75,000

Goods taken for personal use amounted to $5,0000.

Required :

a. Calculate the capital as at January 1, 2020 and December 31, 2020.

b. Ascertain the amount for net profit for the year via the balance sheet.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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