Q3

Exercise 1:Prepare Income Statement of Al Khalid Enterprises for the year ended 31.12.2016 from the given information :

Details	Debit	Credit
Opening stock	20000
Sales		475000
Purchases	90000
Freight in	2550
Sales discount	870
Purchase returns		5000
Sales returns	2000
Stationery Expense	200
Salaries Expense	14000
Rent Expense	7000
Depreciation	3500
Purchase discount	150
Insurance Expense	1500
Telephone charges	2000
Other income		5000
Rent received		3000

• Tax RO. 2800

• Closing Stock RO 20000