Q2. Given below is the opening balance sheet and a list of transactions relating to the business of M/s Gupta & Co. You are required to prepare the closing balance sheet, the income statement and the cash flow statement after making the necessary adjustments. + Balance sheet Amount Equity & Liabilities Capital 100,000 Retained profit 40,000 12% Loan 300,000 Creditors 100,000 540,000 Assets Stock Fixed Assets Debtors Cash 300,000 100,000 60,000 80,000 540,000 Additional Information a) Issued Capital (10,000 shares of Rs.10 @ Rs.15 b) Issued 200 11% Debentures of 1000 each on April 1. Interest payable on 31st December c) Sold 60% Stock for Rs.400,000 for cash d) Outstanding salaries is Rs.50,000 e) Accumulated depreciation is Rs.50,000 f) Tax is to be charged at 30% g) Cash Dividend paid at 10% of opening capital. [40 Marks]