Part 2 Question - 2 (CLO-2) (10 Marks) Prepare an Income Statement for the year ended 31 December 2018 and a Balance Sheet as at that date from the following Trial Balance: ALVIN Enterprises Trial Balance on 31 December 2018 Debit Rs. Credit Rs. Drawings and Capital 30,000 150,000 Loan From HBL 586,800 Purchases and Sales 650,000 1.000.000 Debtors and Creditors 71.000 61,000 Return Inwards and Return Outwards 4,500 5,500 Discount Allowed and Discount Received 4.800 6,000 Land and Building 150,000 Furniture and Fittings 30,000 Motor Vehicle 600,000 Stock 29.000 Cash in Hand 2,000 Cash at Bank 105,000 Wages and Salaries 90,000 Carriage Expenses 42.000 Light, Heat and Water Expenses 22.000 Rent Income 23,000 General Expenses 40,000 Telephone and Postage 9,000 Advertisement 10,000 Insurance 3.000 Accumulated Depreciation on Furniture and Fittings 10,000 Accumulated Depreciation on Motor Vehicles 50,000 Total 1,892,300 1,892,300 Adjustments at end of the year: Closing Stock, Rs. 90,000 Land and building are depreciated at 10% of cost, furniture and fittings are depreciated at 20% of book value and motor vehicles are depreciated at 20% of cost. Accrued Salaries Rs. 10,000. Adjust provision for bad debts to 2% of debtors. Prepaid Insurance, Rs. 500. Rent received in advance Rs. 5,000 General expenses payable Rs. 200