Corporate Accounting: Journal Entries, Income Statement, and Financial Position

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Author Note:

1CORPORATE ACCOUNTING
Answer to Question 1
Journal Entries in the books of Simrex Ltd for the year ended 30th June 2018
Date Particulars L/F Debit ($) Credit ($)
30.06.2018 Income Tax
Expense A/C
To Cash A/c
222250
222250
30.06.2018 Provision for
Doubtful
debts A/C
To Trade
Receivables
A/C
8000
8000
30.6.2018 Damage
Expenses A/C
To Accrued
liabilities A/C
150000
150000
30.06.2018 Land A/C
To
Revaluation
Surplus A/C
35000
35000

2CORPORATE ACCOUNTING
Income Statement of Simerx Ltd for the
year ended 30th June 2018
Particulars
Amou
nt $
Revenue
Sales Revenue 990000
Interest Revenue 98500
Total Revenue
108850
0
Cost of Goods Sold 290000
Gross Profit/Loss 798500
Expenses
Distribution Expenses 93000
Sales and Marketing Expenses 95000
Administration Expenses 55000
Depreciation 90000
Total expenses 333000
Operating Income 465500
less- operating expenses 150000
Less- Interest Expenses 55000
Profit Before Tax 260500
Less- Tax @ 30% 78150
Profit After Tax 182350
Other Comprehensive Income 0
Net Comprehensive Income 182350
Statement of Financial Position of Simrex Ltd
for the year ended 30th June 2017
Particular
Note
s
Amount
($)
ASSETS
Current Assets
Cash and cash equivalents 97000
Trade and other Receivables 1 184500
Inventories 123000
Total Current Assets 404500
Non-current assets
Land 5 120000

3CORPORATE ACCOUNTING
Building 3 324000
Motor Vehicles 6 286000
Term Deposit 7 269600
Goodwill 50000
Total Non-Current Asset 1049600
Total Assets 1454100
LIABILITIES
Current Liabilities
Trade and other payables 82000
Short term borrowings 2 104348
Provisions 4 33000
Total Current Liabilities 219348
Non-current liabilities
Deferred liability 10000
Contingent Liabilities 150000
Total non-current liabilities 160000
Total Liabilities 379348
Net Assets 1074752
Equity 629000