College of Banking and Financial Studies Accounting Trial Balance Problems solve question two only. The trial balance in the word % simalirty turnit

College of Banking and Financial Studies Accounting Trial Balance Problems solve question two only.

The trial balance in the word

% simalirty

turnitin report needed Trial Balance
As on December 31, 2019
Dr.
Accounts
Cr.
Amount
Amount
OMR
OMR
Promises at Cost
373,500
Equipment at Cost
277,500
Commission Revenue
90,000
Accumulated Depreciation – Promises
2,000
Sales of the year
540,000
Cash on hand
50,000
Accumulated Depreciation – Equipment
50,000
Dividend Revenue
25,000
Bank NBO
50,000
Water expenses
15,000
Purchases of goods
30,000
sales Return
60,000
Purchase Returns
10,000
Carriage on purchases
12,000
wages
20,000
shop rent
25,000
Stock at Jan 1st 2019
105,000
Unearned Commission
Account Receivable
33,000
295,000
electricity expenses
13,000
Drawings
28,000
Creditors
115,000
Debentures Payable
151,000
Interest Income
100,000
st
Capital as at Jan 1 2019
Carriage on sales
200,000
7,000
long term Bank Loan
TOTAL
45,000
1,361,000
1,361,000
At the end of the year he had Stock was valued at Rials 600. And he noted that electricity expenses were
outstanding amounting to Rials 40 . Also, he remembered that the Prepaid Rent amounted to Rials 50.
The owner got information about the industry average, but he could not understand it and the information
as follow:
Ratio
Industry Averages
Gross Profit %
50%
Net profit %
35%
current Ratio
2:1
Quick Ratio
1:1
Working Capital
OMR 60,000
Accounts Receivable collection period
20 Days
Creditors payment period
35 Days
Return on capital Employed
45%
Stock Turnover in days
33 Days
cash conversion cycle
18 Days
Required:
You are expected to write a reflective report to the owner of the company incorporating the
following:
1. Explain in detail what is the importance of financial statements and important to
users. Support your statement with references from research articles.
2. Prepare statement of comprehensive income and statement of financial position
for the business.
3. Analyse the information from the statements and explain importance of ratio
analysis and how these will help the company in decision making.
4. Give your recommendations on the business performance as compared to
industry with rationale.
Your report must show in-depth understanding of wide reading of academic research
articles, academic books and general information supported by calculations wherever
essential.
important to
Support your statement with references from research articles.
2. Prepare statement of comprehensive income and statement of financial position
for the business.
1
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