CREDIT - Q No.3 Super Sound Company as at 31 Dec, 2015 TITLE OF ACCOUNTS DEBIT Cash 145,000 A/c receivable 75,000 Plant 325,000 Selling expenses 12,500 Prepaid Rent 8,500 Other expenses 6,000 Office supplies expense 3,500 Interest expense 16,000 Mds. Inventory-Bes 27,800 Purchases 275,000 Transportation-in 22,000 Sales return 12,000 Equipment 500,000 Acc.dep-equipment Acc. dep. plant All for bad debts Salaries expenses 65,000 Marketable securities Sales revenue Purchases return Purchases discount commission income A/c payable Capital Short term loan Long term loan Bill payable Retained earning TOTAL 1,538,300 ADJUSTMENT DATA 1. Depreciation charged 5% on equipment and 2% on plant book value. 2. Inventory on hand at the end of the year Rs. 12,000, 3. Tax rate 109 Required: Income Statement and balance sheet 75,000 100,000 12,000 45,000 695,000 1,800 4,500 27,000 35,000 222,300 55,000 160,000 22,700 128,000 1,538,300