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Q4: Prepare Income Statement and Balance Sheet from the following Trial Balance of Abc Company Trial Balance on 30 September 2020 Debit Credit Owners capital

Q4: Prepare Income Statement and Balance Sheet from the following Trial

Balance of Abc Company

Trial Balance on 30 September 2020

Debit

Credit

Owners capital

125,000

Drawings - owners

25,000

Purchases

160,000

Wages

30,000

Opening inventories

25,000

Travelling expenses

5,000

Plant and machinery

105,000

Furniture

45,000

Cash and cash equivalents

59,000

Accounts receivable

50,000

Accounts payable

33,000

Bank loan

50,000

Rent expenses

6,000

Marketable securities

58,000

Purchase returns

12,000

Sales returns

5,000

Miscellaneous expenses

4,000

Stationery expenses

8,000

Salary expenses

25,000

Sales

365,000

Service revenue

17,500

Interest

7,500

Total

610,000

610,000

1. Closing inventory was RO. 30,000

2. Salary expenses of RO. 1,500 were outstanding.

3. Cash collected for the services to be performed in future periods is RO. 5500

4. Depreciation rate for Plant & Machinery is 25% per annum and depreciation

expenses for Furniture is 10% per annum.

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