Q No.1 Following information are presented by Zee Company at December 31,2020 CREDIT TITLE OF ACCOUNT Cash Account receivable Marketable Securities Equipment Inventory-opening Supplies Prepaid rent Machine DEBIT 205,400 154600 75,000 150,000 46,000 8500 4200 283,500 2400 3000 147,000 50,000 475,800 589,500 25000 36000 Accumulated depreciation-Machine Accumulated depreciation-equipment Account payable short term loan Capital-Black Sales revenue Sales return and allowance Fee income Purchases Salary expense Purchases return and allowances Financial Charges Rent expense Utilities expense Insurance expense Prepaid Advertising Drawing-Black 265,000 15000 1500 5200 8400 25400 6500 2500 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 marks 10(5 each)