Provide solutions to the following accounting problems: 1. List any four users of accounting information. 2. Write down any four objectives of a trial balance. 3. Calculate closing retained earnings.

Here are the solutions to your accounting problems: 1. List out any four users of accounting information. • Investors: To assess the financial health and future prospects of the business for investment decisions. • Management: For planning, decision-making, and controlling business operations. • Creditors: To evaluate the company's ability to repay debts before lending money. • Government: For taxation purposes and to ensure compliance with regulations. 2. Write down any four objectives of trial balance. • To check the arithmetical accuracy of ledger accounts. • To help in locating errors that might have occurred during posting to the ledger. • To provide a summary of all ledger balances in one place. • To serve as a basis for preparing the final accounts (Income Statement and Balance Sheet). 3. Calculate Closing retained earnings of following information: Step 1: Identify the components of retained earnings calculation. The formula for closing retained earnings is: Closing Retained Earnings = Opening Retained Earnings + Net Profit for the year - Dividend paid - Profit transfer to sinking fund - Profit transfer to general reserve Step 2: Substitute the given values into the formula. • Opening Retained earnings: Rs. 20,000 • Net profit for the year: Rs. 40,000 • Dividend paid: Rs. 15,000 • Profit transfer to sinking fund: Rs. 6,000 • Profit transfer to general reserve: Rs. 14,000 Closing Retained Earnings = Rs. 20,000 + Rs. 40,000 - Rs. 15,000 - Rs. 6,000 - Rs. 14,000 Step 3: Perform the calculation. Closing Retained Earnings = Rs. 60,000 - Rs. 15,000 - Rs. 6,000 - Rs. 14,000 Closing Retained Earnings = Rs. 45,000 - Rs. 6,000 - Rs. 14,000 Closing Retained Earnings = Rs. 39,000 - Rs. 14,000 Closing Retained Earnings = Rs. 25,000 The closing retained earnings are: Rs. 25,000 4. Prepare accounting equation of following transaction: The accounting equation is Assets = Liabilities + Equity. a) Business Started with cash and furniture of Rs. 20,000 and Rs.30,000 respectively. • Cash (Asset) increases by Rs. 20,000. • Furniture (Asset) increases by Rs. 30,000. • Capital (Equity) increases by Rs. 20,000 + Rs. 30,000 = Rs. 50,000. Assets (Cash + Furniture) = Liabilities + Equity (Capital) Rs. 20,000 + Rs. 30,000 = Rs. 0 + Rs. 50,000 Rs. 50,000 = Rs. 50,000 b) Purchase plant of Rs, 10,000 and partial payment only Rs. 6,000 • Plant (Asset) increases by Rs. 10,000. • Cash (Asset) decreases by Rs. 6,000. • Accounts Payable (Liability) increases by Rs. 10,000 - Rs. 6,000 = Rs. 4,000. Assets (Plant - Cash) = Liabilities (Accounts Payable) + Equity Rs. 10,000 - Rs. 6,000 = Rs. 4,000 + Rs. 0 Rs. 4,000 = Rs. 4,000 5. Prepare trial balance of following items. | S.N. | Particulars | Debit (Rs.) | Credit (Rs.) | | :--- | :-------------------- | :---------- | :----------- | | 1 | Common stock | | 40,000 | | 2 | Bank loan | | 30,000 | | 3 | Salary payable | | 35,000 | | 4 | Machinery | 50,000 | | | 5 | Closing stock | 20,000 | | | 6 | Bank balance | 15,000 | | | 7 | Accounts receivable | 20,000 | | | 8 | Cash in hand | 10,000 | | | 9 | Sales | | 1,00,000 | | 10 | Purchases | 70,000 | | | 11 | Rent paid | 5,000 | | | 12 | Commission received | | 8,000 | | 13 | Capital | | 50,000 | | 14 | Drawings | 10,000 | | | | Total | 2,00,000| 2,63,000 | The trial balance does not balance with the given figures. That's 2 down. 3 left today — send the next one.