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A start - up company, Pace Inc., received funding from two sharks * jointly in the Shark Tank * A new accountant at the company

A start-up company, Pace Inc., received funding from two sharks* jointly in the Shark Tank*
A new accountant at the company has prepared a Trial Balance using the information for the last two years.
Trial balance for the year ended Mar 31,2022
Account Title Head of Account Debit Amount ($) Credit Amount ($)
Share Capital Owner`s equity 500,000
Bank Loan Non-Current liability 100,000
Share capital Peyush Bansal Non-Current liability 100,000
Trade payable Current liability 50,000
Outstanding Rent Current liability 5,000
Other current liabilities Current liability 80,000
Equipment Non-current tangible asset 200,000
Furniture Non-current tangible asset 400,000
Patents Non-current intangible asset 100,000
Trade receivables Current asset 80,000
Cash balance Current asset 105,000
Bank balance Current asset 200,000
Revenue Indirect Income 360,000
Purchases Direct Expense 100,000
Salaries Indirect Expense 20,000
Rent of building Indirect Expense 10,000
Accumulated Depreciation on tangible assets Current liabilities 50,000
Dividend expense during the year Indirect Expense 30,000
1,245,0001,245,000
Note: a) There is no opening stock for the company.
b) Closing Stock as on 31.03.2022 is 50,000
c) Dep for the year is :
Equipment-10% on cost
Furniture-7.5% on cost
d) Patents are not to be amortised
e) During the year, New equipment was purchased for 100,000(Dep to be given for the full year)
f) At the start of the year, Furniture costing 50,000(Carrying value 40,000) was sold at a loss of 35,000
(No Dep for current year to be given)
You are provided with the following financial statements:
Income statement
Balance sheet
Cash flow statement
Using the information in the Trial Balance and note, complete the financial statements by computing and filling in the missing numbers.
Statement of Income for the year ended 31 Mar 2022
Particulars Amount (in $) Amount (in $)
Revenue 360,000
Less: Cost of goods sold
Purchases ------------
Less: Closing Stock (50,000)50,000
Gross profit for the year ------------
Less: Indirect expenses
Salaries 20,000
Rent of building ----------
Loss on sale of furniture ----------
Depreciation on tangible asset ----------
Dividend expense during the year 30,000125,000
Net profit for the year -----------
Balance Sheet as on 31 Mar 2022
Particulars Amount ($) Amount ($)
Non-current assets
a) Fixed assets
i) Tangible assets
Equipment ----------
Furniture 300,000550,000
i) Intangible assets
Patents ----------100,000
Current assets
Inventories 50,000
Trade receivables ----------
Cash balance (5000+100000+35000-1,00,000)40,000
Bank balance ------------370,000
----------
Equity and liabilities
Shareholders Funds
a) Share Capital
Own capital 500,000
Peyush Bansal -----------
a) Reserves and Surplus
Balance is Statement of Profit and Loss -------------785,000
Non-current liabilities
a) Bank Loan -------------
Current liabilities
a) Trade payables -------------
a) Outstanding rent -------------
a) Other current liabilities -------------235,000
1,020,000
The following additional information is provided for the Cash Flow Statement.
a) Dividend paid during the year =30,000
b) Opening balances as on 01.04.2021 are as follows:
i) Patent =105,000
ii) Investments by Peyush Bansal =0
iii) Trade receivable =40,000
iv) Cash Balance =3,000
v) Bank Balance=20,000
vi) Share capital =500,000
vii) Bank Loan =50,000
viii) Trade payables =55,000
ix) Outstanding Rent =3,000
x) Other current liabilities=40,000
Use the Trial Balance and the additional information to fill in the missing numbers for the Cash Flow Statement.

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