View more random threads:
- Where does GDB find load memory address information for...
- eco404 GDB idea solution spring 29 May 2011
- FIN621 Financial Statement Analysis GDB No.2 Solution Fall...
- eng201 GDB Idea solution spring June 2011
- CS502 Fundamentals of Algorithms GDB Spring 2014 Last Date...
- MGMT625 GDB Idea Solution 28 July 2010
- Isl201 Islamic Studies GDB fall 2010 Solution
- mgt510 2nd GDB idea solution spring May 2011
- ISL201 Islamic Studies GDB No.2 Solution Fall Semester 2012
- MKT501 GDB no 1 Fall 14 November 2011
MGT101 Financial Accounting GDB Solution and Discussion December 2014
Question/Description
Topic to be tested:
Financial Statements
Learning Objectives:
To develop an understanding regarding the treatment of elements of financial statements
CONSTRUCT:
Sponsored Links
Star Corporation runs a kitchen and cookware shop in Lahore. Company book-keeper has just extracted the year-end trial balance shown below. Note that the extracted trial balance includes the stock value at the start of the year; closing stock valuation is given after the extracted trial balance. The stock of goods for resale is valued by the business at the end of each financial year, and the valuation is subsequently entered into the book-keeping system, for the purposes of financial reporting.
Extracts of Trial balance of Star Corporation, as at 30 June 2013
Untitled.jpg
Additional Information: Stock at 30 June 2013 was valued at Rs. 72,000
DISCUSSION QUESTIONS:
1. You are required to recognize the accounting treatment for each extracted trail balance item according to the given example highlighted with red color.
Why value of stock at 30 June 2013 is reported as additional information rather than appearing in trial balance? Answer with logical reasoning.
There are currently 1 users browsing this thread. (0 members and 1 guests)