CASE STUDY 3 Prepare the statements of Financial performance and Position Particular Debit) OMR (Credit) Opening stock 40,000 Rent 2,000 Plant and Machinery 120,000 Land and Buildings 255,000 Power 3,500 Purchases & Sales 75,000 150,000 Sales returns 2,500 Telegram and postage 400 Wages 4,500 Salary 2,500 Insurance 3,200 Discount 1,000 1,500 Repairs and renewals 2,700 Trade taxes 1,200 Debtors 75,000 Investment 65,000 Bad debts 2,000 Trade expenses 4,500 Commission 1,250 Travelling expenses 1,230 Drawings 20,020 Provision for bad debts 1,000 General Reserves 50,000 capital 250,000 Provision for depreciation on machinery 20,000 Creditors 50,000 Bills payable 50,000 Loan 110,000

total 682,500 682,500

Adjustment: - Closing stock OMR 35,500 Depreciate Plant and Machinery 5% ON WDV and land and building 6% on straight line - Further bad debts OMR 2,500 and make provision for bad debts on debtors 5% - salary outstanding OMR 200 and wages outstanding OMR 500 - Insurance prepaid OMR 500 - Closing stock OMR 35,500