B) a) From the transactions listed below, prepare a balance sheet.

1) Cash in hand, 75,00K

2) Owners investment, 5000K

3) Approved bank loan, 5500K

4) To purchase land and buildings, 4000K

5) Office rent, 30K

6) To purchase raw materials, 2,00K

7) Products in stock (ready to be shipped), 5,00K

8) Salary of employees, 3,00K

9) Office expenses, 5.5K

10) Sales, 1024K

b) Briefly explain the basic accounting equation.

c) How will you enter the unearned revenues into a balance sheet?

d) Describe the income statements with a sample format.

A local bakery installed three cake stalls at NITC as a part of Ragam festival. From the given data, answer the following questions: License fee = 5000/- per stall Sales = 123, 110, 97 units for stall 1, stall 2, and stall 3 respectively Cost of making one cake = 46/- Selling price = 100/- a) What is the no profit-no gain point for the bakery? [1] b) Show the Break-Even Point graphically. Explain the Variable cost and the fixed cost in the graph. [2] c) What will be the revised selling price if the bakery expects a minimum profit of 15,000/-from each stall? Re-calculate the BEPS. [2]