Q No.2: Gulistan textile mills, INC. (9)

TRIAL BALANCE

DECEMBER 31,2020

TITLE OF ACCOUNT	DEBIT	CREDIT
Cash	110,350
Account receivable	54600
Note receivable	83,000
Land	100,000
Inventory-opening	40,500
Supplies	650
Prepaid insurance	1200
Furniture and Fixture	83,200
Accumulated depreciation-furniture		2400
Account payable		47,000
Note payable (long-term)		12,600
Capital-Frank		175,000
Sales revenue		338,000
Sales discount	1400
Sales return and allowance	2000
Interest revenue		600
Purchases	89,300
Purchases discount		3000
Purchases return and allowances		1200
Freight in	5200
Rent expense	8400
TOTAL	579,800	579,800

ADJUSTMENT DATA:

1. Interest revenue earned but not yet collected Rs. 900, & Supplies on hand Rs. 300
2. Insurance expired during the year Rs. 1000 & Depreciation for the year Rs. 600
3. Interest expense incurred but not yet paid Rs. 200
4. Inventory on hand at the end of the year Rs. 42,000
5. 5% of A/c Receivable is estimated to be uncollectible.

INSTRUCTIOS: Prepare Adjusting entries, adjusting Trial Balance and Income statement.