View more random threads:
- Bnk604 GDB idea solution Solution spring June 2011
- MGT101 GDB 2 idea Solution 27 May Spring 2011
- MKT711 Marketing Research GDB No. 1 Solutions Fall 2014
- Mgt611 GDB No. 3 July Spring 2011 idea solution
- MGT301 Principles of Marketing GDB No.1 Solution Spring...
- MGMT611 Human Relations GDB No.2 Solution Fall Semester 2013
- FIN622 Corporate Finance GDB No.2 Solution Fall Semester...
- Eng101 gdb solution
- ECO403 GDB Solution July 2010
- Mkt630 GDB idea solution No. 2 spring 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:
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.
Sponsored Links
There are currently 1 users browsing this thread. (0 members and 1 guests)