1)What is permanent income theory of consumption

2) Diagrammatically show the consumption function C=a+by

3)

From the following trial balance of P Boones draw up statement of comprehensive income for the year ended 30 September 2002, and a statement of financial position as at that date. Dr Cr Sh. Sh. Stock 1 October 19x8 23,680 Carriage outwards 2,000 Carriage inwards 3,100 Returns inwards 2,050 Returns outwards 3,220 Purchases 118,740 Sales 186,000 Salaries and wages 38,620 Rent 3,040 hsurance 780 Motor expenses 6,640 Office expenses 2,160 Lighting and heating expenses 1,660 General expenses 3,140 Premises 50,000 Motor vehicles 18,000 Fixtures and fittings 3,500 Debtors 38,960 Creditors 17,310 Cash at bank 4,820 Drawings 12,000 Capital 126,360 332,890 332,890