Case Study

on
Lone Pine Cafe(A)

Prepared by:
Isha Das
Gaurav Arora
Akhilesh Purohit
Akshay Dewan

Lone Pine Cafe(A)

Balance Sheet
As on 2nd November 2009
Assets Liabilities
Current Assets:
Cash: $ 48000 Bank Loan Payable: $ 21000
Loan received: $ 21000 Owners Equity: $ 48000
Cash in Hand: $ 69000
*Less assets: $ 60328 Total: $ 69000
Checking Cash

$ 8672

Assets created
a.Prepaid rent: $ 1500
b.Equipment: $ 53200
c.Cash register: $ 1400
d.License: $ 1428
e.Food: $ 2800
Assets Created Total value
*Cash Deductions:
f. Rent: $ 1500
g.Equipments: $ 53200
h.Food: $2800
i. License: $ 1428
j. Cash register: $ 1400
Deductions: $ 60328
Total Assets:
Checking Cash: $ 8672
Assets Created : $ 60328
Total : $ 69000

$ 60328

Lone Pine Cafe(A)

Balance Sheet
As on 30th March 2010
Assets

Liabilities

a.
b.
c.
d.
e.

Checking account: $ 1030

Supplies : $ 1583
Accounts Receivable: $ 870
Cash in Register : $ 311
Cash Register : $1400
Bank Loan payable: $ 18900
Equipment: $ 50755
(Bank loan of $ 2100 paid out of $21000)
(Equipment depreciation of $ 2445)
Liabilities: $ 20483
f.
License: $ 833
Owners Equity= Assets total value-Liabilities
(License depreciation : $ 595)
= $37146
g.
Food: $ 2430
h.
Prepaid rent(one day 31st March): $ 48
Total Liabilities = Owners Equity+
Liabilities
= $ 57629
i.

Less : Cash deduction(rent): $48

Assets Total value

$ 57629

Owners equity is calculated after deducting the total liabilities from total assets
value , computed to be $ 37146 as on 30th March-2010.
Each partner is entitled to get One third of the amount i.e $ 12382.

Notes: If the theft of cash $311 and the cash register is done by Mr. Antoine and/or Mrs.
Landers the equity would not be shared equally and the fair cost of cash register and
the cash available in the cash register would be deducted from their part of share of
equity.

Thank You