Question

prepare a classified balance sheet for the month ending August

On the 1st of August, “Brothers haircut” had these transactions during this month. On August 2, Paid $2200 cash for August salon rent. On August 4, Incurred $380 of advertising costs due in 20 days On August 5, Purchased salon equipment for $120 On August 7, Paid for supplies (shampoos, creams, and gels) $350 On August 8, received $280 for selling gels On August 12, paid $180 water bill On August 12, paid $160 for electricity bill On August 14, incurred $1050 for the business’s bank loan due in 14 days On August 16, purchased a new chair set up for $400 On August 17, paid the amount due for the influencer $380 for advertising On August 19, paid $90 for my internet bill On August 21, received for $200 selling of shampoos On August 23, paid $110 for insurance On August 24, cleaner $110 On August 27, paid $1050 for the business’s bank loan On August 28, gas bills $35 On August 30, extra salary cost to a new trainee $400 On August 30, purchased a new tv screen $600 On August 30, paid $6000 in salaries for the month of August. On August 30, received $14000 from haircuts services during the month of August. And $500 of selling gels, creams, and shampoos

Answer 1

BROTHER'S HAIRCUT

BALANCE SHEET AS ON 31st AUGUST

LIABILITIES	AMOUNT($)	ASSETS:-	AMOUNT($)
Capital		Fixed assets:
Net Profit as per P&L	4115	Salon Equipment	120
		Chairs	400
		Cleaner	110
		TV Screen	600
		Current Liablities
		Cash	2885
Total	4115	Total	4115

Working Notes:-

Cash Account for August

Receipts	Amount($)	Payments	Amount($)
To Sales	980	By Rent	2200
To Rendering of Services	14000	By Advertisement	380
		By Suppliers	350
		By Water Bill	180
		By Electricity Bill	160
		By Loan Preoceesing Charges	1050
		By Insurance	110
		By Gas Bill	35
		By staff salary	6400
		By Salon Equipment	120
		By Chairs	400
		By Cleaner	110
		By TV Screen	600
		By Balance C/d	2885
Total	14980	Total	14980

PROFIT & LOSS ACCOUNT FOR MONTH ENDING 30th AUGUST

PARTICULARS	AMOUNT($)	PARTICULARS	AMOUNT($)
To Rent	2200	By Sales	980
To Advertisment	380	(280+200+500)
To Suppliers	350	By Rendering of Services	14000
to water bill	180
To Electricity Bill	160
To Loan Processing Charges	1050
To Insurance	110
To gas Bill	35
To Staff Salary(400+6000)	6400
To Net Profit	4115
Total	14980	Total	14980

3) The above balance sheet has been prepared in T-form since there is no information given in question whether it is a company or not. Further, the balance sheet has been prepared on the basis of information given to us. since there is no opening balances given we assume it a newly opened business.