Home > Financial Accounting, Financial Statement Analysis > VU Specialization Certification:Fall 2010 Subject FIN621 Financial Statement Analysis Assignment 1

VU Specialization Certification:Fall 2010 Subject FIN621 Financial Statement Analysis Assignment 1

Subject: FIN621 Financial Statement Analysis

Assignment # 1:

A. You are required to compare the two Trial Balances given above and prepare the adjusted journal entries that cause the changes in account balances.

B. You are also required to include an explanation (narration) as part of each adjusting entry.

Trial Balance

Trial Balance

Adjusted Trial Balance

Adjusted Trial Balance

Solution:

Voucher No: 1

New Star Services
Journal Voucher
Voucher No: 1
Voucher Date: 31-12-2009

Particulars Dr (Rs.) Cr (Rs.)
Depreciation: Machinery 132
Accumulated depreciation: Machinery 132
Total 132 132
Narration Depreciation of Asset (Machinery) will be charge (debit) as expense for the year of 2008-2009.same value will be added (credit) in accumulated depreciation of machinery. 

Book value of asset becomes: 7920-(2904+132)=>7920-3036=>4884

Voucher No: 2

New Star Services
Journal Voucher
Voucher No: 2
Voucher Date: 31-12-2009

Particulars Dr (Rs.) Cr (Rs.)
Salaries 660
Salaries Payable 660
Total 660 660
Narration Salaries expense for the month of june added (debit) as expense, but not paid in cash. 

This amount will paid in future (july,2009).so we added (credit) in salaries payable

Voucher No: 3

New Star Services
Journal Voucher
Voucher No: 3
Voucher Date: 31-12-2009

Particulars Dr (Rs.) Cr (Rs.)
Office Supplies Expense 432
Office Supplies 432
Total 432 432
Narration Expense occur for office supplies will debit and office supplies will be credit

Voucher No: 4

New Star Services
Journal Voucher
Voucher No: 4
Voucher Date: 31-12-2009

Particulars Dr (Rs.) Cr (Rs.)
Un earned consulting Fee 252
Consulting Fee Earn 252
Total 252 252
Narration Because no detail available of account ‘Un earned consulting Fee’. So I am assuming that ‘Un earned consulting Fee’ is an amount from income received in advance. 

According to my assumption; advance income (Un earned consulting Fee) will reduced (debit) and set (credit) the actual income (Consulting Fee Earn) (Rs.252).

Voucher No: 5

New Star Services
Journal Voucher
Voucher No: 5
Voucher Date: 31-12-2009

Particulars Dr (Rs.) Cr (Rs.)
Consulting Fee Receivable 1020
Consulting Fee Earn 1020
Total 1020 1020
Narration Income received from consultancy will be credit and but actual cash on is not received, so we debit the consulting fee receivable.
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