CASE 2

Smoky Valley Caf Case

Presented by: Anvesh Lanka Fenella Andrade Mallesh Goudar Nipun Jain Masters in European Studies and Management (MESM) 2010-2012 Manipal Centre for European Studies Manipal University, Karnataka, India

Assets+ Expenses + Dividends/Drawings

Cash 6,000

Liabilities +Capital +Income /Revenue

Capital 6,000

Assets+ Expenses + Dividends/Drawings

Cash 1500

Liabilities +Capital +Income /Revenue

Capital 6,000

Land Building Development Equipment

2,500 10,500 2,000 1,000

Mortgage

11,500

Total

17,500

Total

17,500

As of August 12th 1946

Assets+ Expenses + Dividends/Drawings

Cash Land Building Development Equipment Deposit 1,465 2,500 10,500 2,000 1,000 35

Liabilities +Capital +Income /Revenue

Capital Mortgage 6,000 11,500

Total

17,500

Total

17,500

As of August 15th 1946

Assets+ Expenses + Dividends/Drawings

Cash Land Building Development Equipment Deposit Additional Equipment 1,049.05 2,500 10,500 2,000 1,000 35 415.95

Liabilities +Capital +Income /Revenue

Capital Mortgage 6,000 11,500

Total

17,500

Total

17,500

As of October 1946

Assets+ Expenses + Dividends/Drawings

Cash Land Building Development Equipment Deposit Additional Equipment 1,449.05 2,500 10,500 2,000 1,000 35 415.95

Liabilities +Capital +Income /Revenue

Capital Mortgage Loan 6,000 11,500 400

Total

17,900

Total

17,900

As of November 1946

Assets+ Expenses + Dividends/Drawings

Cash In Hand At Bank Smoky Valley Caf Extra Equipment Depreciation Supplies Payment on Mortgage Deposit on Beer Operating Expenses Total 75.13 65.35 9.78 16,000 415.95 -322.09 100 700 35 610.11 17614.10

Liabilities +Capital +Income /Revenue

Capital Loan Mortgage Creditors Depreciation Land Improvements Buildings Caf Equipment Total 6,000 400 10,800 92.01 322.09 44.45 233.45 44.19 17614.10

As of December 16th 1946

INCOME STATEMENT
Value of assets on Dec 16th (Income) =16303.99 (75.13+100+415.95+16000-322.09) Value of Liabilities on Dec 16th (Expenses) = 17292.01 (6400+10800+92.01) Loss = 16303.99 17292.01 = 988.02

BALANCE SHEET
LIABILITIES Capital Mortgage Creditors 6,400 10,800 92.01 ASSETS Cash Total Assets Land Building Development Equipment 75.13 16,000 2,500 10,500 2,000 1,000

Additional Equipment
Loss Supplies Deposit Total 16,303.99 Total

415.95
100 35 16,303. 99

- 988.02 Accumulated Depreciation -322.09

EQUITIES

Contributions to Capital Mrs. Bevan = 2400 Mr. Maywood = 2000 Mrs. Maywood = 2000

Total Loss = 988.02 Equal Split on Loss [1/3] = 329.34

Equities on December 16th Mrs. Bevan = 2400 329.34 = 2070.66 Mr. Maywood = 2000 329.34 = 1670.66 Mrs. Maywood = 2000 329.34 = 1670.66