Q2. Prepare Adjusted Trial Balance for the year ending 31 December 2016 from the Trial Balance and adjustments of Michael Company given below: Mishal Company Trial Balance As on December 31.2016 Description Debit Credit Dra Account 80.000 Supplies Purchases Sales 55.000 485.000 610,000 80,000 Debtors Creditors 60.500 5.000 6,000 28.000 15.000 4,000 50,000 5000 3.500 Rs. 750,500 Sales Retums Inwards Salaries Rent, Rates, Taxes Insurance E Fuminure Cash in hand Total Rs. 750.500 Adjustments: Depreciate machinery @ 5% p.a, by written down method. Outstanding Salaries Rs. 2,0oo. Insurance paid in advance Rs. 500. Maintain @ 5% allowance for doubtful debts on sundry debtors. Supplies at the end of year of worth Rs. 20,000. Required . . . a. Prepare Journal Entry (DI 10 Marks) b. Adjusted Trial Balance (DI-10 Marks) c. Balance sheet (DI 10 Marks) d. Evaluate each of the Adjustments in your own words (D2- 10 Marks) e. Measure the working capital and Current ratios with required formula (D2 5 Marks) Criticize in your own words the types of ratio applicable for the merchandising company to compute the performance (D2 10 Marks) f