Question 15.
From the following information, prepare Balance Sheet of a trader as at 31st March, 2018 arranging the assets and liabilities-
(i) in order of permanence and
(ii) in order of liquidity:
Answers
Balance sheet as at 31.3.2018 in the given order
Explanation:
i) In the order of Permanence
Balance Sheet
as at 31.3.2018
Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital 242600 Goodwill 20,000
Land and Building 60,000
Creditors 63,000 Plant and Machinery 40,000
Bills Payables 10,700 Furniture 16,000
Expense Liabilities 1,200 Debtors 47,500
Investment 20,000
Bills Receivable 13,000
Bank 20,000
Closing Stock 80,000
Cash in Hand 1,000
317500 317500
ii)In the Order of Liquidity
Balance Sheet
as at 31.3.2018
Liabilities Amount(Rs.) Assets Amount(Rs.)
Expense Liabilities 1200 Cash in Hand 1000
Bills Payables 10700 Bank 20,000
Creditors 63000 Closing Stock 80,000
Capital 242600 Bills Receivable 13,000
Investments 20,000
Debtors 47,500
Furniture 16,000
Plant and Machinery 40,000
Land and Building 60,000
Goodwill 20,000
317500 317500
i) In the order of Permanence
Balance Sheet
as at 31.3.2018
Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital 242600 Goodwill 20,000
Land and Building 60,000
Creditors 63,000 Plant and Machinery 40,000
Bills Payables 10,700 Furniture 16,000
Expense Liabilities 1,200 Debtors 47,500
Investment 20,000
Bills Receivable 13,000
Bank 20,000
Closing Stock 80,000
Cash in Hand 1,000
317500 317500
ii)In the Order of Liquidity
Balance Sheet
as at 31.3.2018
Liabilities Amount(Rs.) Assets Amount(Rs.)
Expense Liabilities 1200 Cash in Hand 1000
Bills Payables 10700 Bank 20,000
Creditors 63000 Closing Stock 80,000
Capital 242600 Bills Receivable 13,000
Investments 20,000
Debtors 47,500
Furniture 16,000
Plant and Machinery 40,000
Land and Building 60,000
Goodwill 20,000
317500 317500