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Backbay Company provides mail delivery services in Mumbai. To prepare its balance sheet for February 28, the company uses information from its trial balance, including assets of ₹21,800 and liabilities/equity of ₹21,800. Additional financial information is also provided about prepaid rent, inventory, unbilled revenue, prepaid revenue, depreciation, and accrued salaries that will be used to adjust account balances and complete the balance sheet.

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Biplav Kumar
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211 views2 pages

Problem

Backbay Company provides mail delivery services in Mumbai. To prepare its balance sheet for February 28, the company uses information from its trial balance, including assets of ₹21,800 and liabilities/equity of ₹21,800. Additional financial information is also provided about prepaid rent, inventory, unbilled revenue, prepaid revenue, depreciation, and accrued salaries that will be used to adjust account balances and complete the balance sheet.

Uploaded by

Biplav Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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17.

Prepare Balance Sheet

Backbay Company provides local mail delivery service in the financial district of Mumbai.
The trial balance of the company is as follows:

BACKBAY COMPANY
Trial Balance, February 28, 20XX

Account Debit=assets/expenses Credit=liabilities/capital

Office Equipment 7000

Accumulated Depreciation, 1000


Office Equipment

Office Supplies 3800

Debtors/receivables 1900

Cash 770

Prepaid Rent 2400

Creditors/payables 1100

Unearned Revenue 400

Share Capital 10000

Retained Earning 2100

Dividends 1400

Revenue From Services 7200

Salaries Expense 3800

Telephone Expense 730

Total 21800 21800

Additional Information:

 Prepaid rent represents rent for February to April


 The inventory of office supplies at the end of February was Rs.3200
 Revenue earned for services performed but not yet billed at the end of February was
Rs.1600
 Revenue earned for services performed, paid for in advance, was Rs.210
 Depreciation on office equipment for February was Rs.250
 Accrued salaries at the end of February were Rs.540
 Standard Bank has been approached by two customers for a short term loan of
Rs.3000. The following summarized information is available from the latest financial
statements:

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