Solution
Khushboo answered on
Aug 16 2021
Solution 1:
A. The financial statements of the entity are as below:
Income Statement
Particulars
Amount($)
Income
Income from building services
5,50,000
Total (a)
5,50,000
Expenses
Wages
1,50,000
Building supplies used
3,10,000
Motor vehicle expenses
5,600
Electricity and telephone
4,000
Total (b)
4,69,600
Net Income of the entity (a-b)
80,400
Balance sheet
Particulars
Amount($)
Particulars
Amount($)
Capital (Bal. item)
94,100
Assets
Retained earnings (surplus balance of income statement)
80,400
Cash balance
500
Less: Cash withdrawal
-5,700
Bank balance
3,800
Trade receivable
80,000
Liabilities
Building supplies
18,000
Wages accrued
3,500
Equipment a/c
68,000
Trade payables
30,000
Motor vehicle
32,000
Total
2,02,300
Total
2,02,300
B. Detailed analysis of statement of financial position and performance from the vendor’s view point:
The financial statement is that the vital statement that is employed by the varied users to research the money position of the corporate. It's utilized by the varied users like creditors, suppliers, shareholders, investors and lots of additional for his or her higher cognitive process purpose and on such call they decide their relationship with the corporate. Similarly in the given case the provider of the fa
ic desires to undertake the choice of associating with the corporate concerning the availability of materials and on that premise of the financial statement decision of the supplier are going to be undertaken. The provider of the fa
ic will use the money statements of entity for the choice to provide supply to the organization and...