Q No.1 Following information are presented by Zee Company at December 31,2020 TITLE OF ACCOUNT DEBIT CREDIT Cash 205,400 Account receivable 154600 Marketable Securities 75,000 Equipment 150,000 Inventory-opening 46,000 Supplies 8500 Prepaid rent 4200 Machine 283,500 Accumulated depreciation-Machine 2400 Accumulated depreciation-equipment 3000 Account payable 147,000 short term lona 50,000 Capital-Black 475,800 Sales revenue 589,500 Sales return and allowance 25000 Fee income 36000 Purchases 265,000 Salary expense 15000 Purchases return and allowances 1500 Financial Charges 5200 Rent expense 8400 Utilities expense 25400 Insurance expense 6500 Prepaid Advertising 2500 Drawing-Black 25000 TOTAL 1,305,200 1,305,200 Additional Information: Ending inventory Rs.22,500 Tax rate 15% Depreciation on fixed assets at 5% Required: a)Prepare Income Statement b)Prepare Balance Sheet