Hill Traders purchases and sells one type of plastic chairs. Provides the following account balances on Jan 01, 2020: Cash Rs.100,000, Inventory Rs.30,000, Equipment Rs.70,000 and Capital Rs.200,000.

Following transactions relate to the month of January 2020:

1. Purchased chairs costing Rs.120,000 on account. Credit terms were 2/10, n/30.

2. The company paid Rs.6,000 as freight to bring the chairs into the companys premises.

3. Defective chairs returned to supplier Rs.9,000.

4. The company sold chairs during the period on credit on 2/10, net 30 of at Rs.180,000.

5. The company incurred freight cost to deliver goods to customer warehouse Rs.7,000.

6. Customer returned defective goods to company Rs.11,000.

7. Customer paid in full and got the discount.

8. The company paid to supplier in full and availed the discount.

9. Company paid commission to sales staff Rs.8,000.

10. Advertising expense incurred Rs.8,000.

11. The company paid office staff salaries Rs.11,000 and insurance expense Rs.7,000.

12. At the end of period, goods costing Rs.39,000 were available in storeroom.

Required:

a. Prepare journal entries of above transactions.

b. Prepare trial balance.

c. Prepare statement of profit or loss.

d. Prepare statement of changes in equity.

e. Prepare statement of financial position.