Question
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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