Question 6 (Final Assessment)

[Anoma Herath]

In this question, I ended up with a much higher amount of equity than the Net Assets calculated. Given that the total revenue is $1035000 (sales +commission+interest+gain on sale) before any deductions, and Retained Earnings and Shares have significant amounts, I don’t think I can balance this Statement. Looks like I have missed something very important. Can you help me.

(I accidently posted this as a reply to previous question

[Chandrika Edirisinghe]

Hi Anoma,

I thought I replied you, Sorry!
Question 06 – does not ask for a balance sheet. There are not enough information to do so. Only required (a) Prepare Income Statement(b) Prepare Statement of Changes in Equity ( C) 03 Notes.

[Anoma Herath]

Sorry, what I meant was I couldnt get Net Assets equalling (=balancing) to Total Equity in the Income Statement, not a Balance Sheet.

[Anoma Herath]

Hi Chandrika,

I think I sorted it out. The question asked for an Income assessment not a Statement of the Financial position.

Thanks anyway.

Anoma