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Stafford Press Case

The adjusted balance sheet shows the equity, liabilities and assets of Stafford Press. The key assets include land (Rs. 175,185), equipment (Rs. 179,448), printing press (Rs. 111,218) and building (Rs. 560,000). Key liabilities include current liabilities (Rs. 160,223) and mortgage (Rs. 425,000). The income statement shows a net profit of Rs. 312,776 which was transferred to retained earnings. The cash flow statement shows opening balance of Rs. 395,868, total cash inflows of Rs. 580,928 and total cash outflows of Rs. 456,768, leaving a closing balance of Rs. 124,160.

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Amit Kumar Arora
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2K views4 pages

Stafford Press Case

The adjusted balance sheet shows the equity, liabilities and assets of Stafford Press. The key assets include land (Rs. 175,185), equipment (Rs. 179,448), printing press (Rs. 111,218) and building (Rs. 560,000). Key liabilities include current liabilities (Rs. 160,223) and mortgage (Rs. 425,000). The income statement shows a net profit of Rs. 312,776 which was transferred to retained earnings. The cash flow statement shows opening balance of Rs. 395,868, total cash inflows of Rs. 580,928 and total cash outflows of Rs. 456,768, leaving a closing balance of Rs. 124,160.

Uploaded by

Amit Kumar Arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Adjusted Balance Sheet of Stafford Press

Equity + Liabilities Amount Assets Amount


Current Liabilities 160223 Land 175185
Common Stock 400000 Equipment 179448
Retained Earnings 312776 Less: Accumulated Depreciation 132832 46616
Printing Press 111218
Mortgage 425000 Building 561000
Cash 124160
Composing Machine 28030
Current Assets 251790

Total 1297999 Total 1297999


Income Statement
Particulars Amount
Income
Opening Balance 358648
Profit on sale of equipment 2445
Profit on trade off of Equipment 400

Expense

Loss on sale of Land and Building -35182


Transportation from old to new -8440
Wages towards movement -1875
Repair of Equipment -3220

RE taken to B/S 312776

Cash Flow Statement


Particulars Amount
Opening balance 395868
Sale of Land 149860
Sale of Equipment 35200

Total 580928
Outflow
Purchase of Printing Press 111218
Purchase of Land 175185
Purchase of Composing Machine 20830
Construction of Building 136000
Transportation from old to new 10315
Repair of Equipment 3220

Total 456768
Closing balance taken to B/S 124160
Sale of Land and Building 149860
Less : Value of Land and Building in the Books 185042
Loss on sale of land and building -35182

Sale of Equipment 35200


Book value of Equipment 32755
Profit on sale of Equipment 2445

Printing Press value


CP 109868
Transportation cost 450
Wages for installation( 15*60) 900
Value to be recorded in the books 111218

Land Purchased 140000


Old building abraison 21235
Drainage facilities 13950
Book value taken to land 175185

Trade in of Equipment
Cost price 12000
Less: Accuulated Depreciation 5200
Net Value in Books 6800
Value received in trade of 7200
Profit on trade off 400
Equipment Account
Particulars Amount

Opening balance 265093


Less: Sale of Equipment -73645
Less: Trade in -12000

Total 179448
Depreciation
Accumulated Depreciation 178922
Less: Equipment sold -40890
Less: Trade in -5200

Total 132832
Closing balance taken to B/S 46616

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