Question 1: Adjusted Trial balance of Watson Departmental Store as at November 30, 2017, is shown below.

Account Title	Debit Rs.	Credit Rs.	Account Title	Debit Rs.	Credit Rs.
Cash	28, 700		Sales		689, 200
Accounts Receivable	33, 700		Sales Discount	2, 000
Store Supplies	25, 500		Sales Return	2, 200
Inventory(Dec 1, 2016)	45, 000		Purchases	415, 000
Store Equipment	85, 000		Purchases Returns		6, 250
All. for Dep. Store Eq		18, 000	Carriage Inwards	12, 500
Delivery Equipment	48, 000		Advertising Expense	28, 400
All. for Dep Del Eq		6, 000	Salaries Expense	140, 000
Accounts Payable		38, 500	Delivery Expense	18, 700
Notes Payable		56, 000	Rent Expense	24, 000
Capital: C. Watson		123, 750	Repair Expense	7, 000
Drawings: C. Watson	22, 000			937, 700	937, 700

Merchandise Inventory as at November 30, 2017 is Rs.44, 400

Instructions:

1. Prepare the three financial statements from the Adjusted Trial Balance
2. Give the closing entries in the journal, and
3. Prepare an After Closing Trial Balance at year end. (8 Marks)

Question 2: On January 3, 2015, a machine was bought at a cost of Rs.55, 000. Its estimated salvage value is Rs. 14, 200 and its estimated useful life is 4 years.

Instructions: -

1. Give the journal entry to record the acquisition of machine.
2. Use all the following three methods to prepare the depreciation schedule

1. Straight Line Method
2. Declining Balance Method
3. Sum-of-the-Year-Digit Method

3. Give the adjusting entries to record depreciation and prepare the financial statement extracts as following:

1. Straight Line Method for the year 2015,
2. Declining Balance Method for the year 2017, and
3. Sum-of-the-Year-Digit Method for the year 2018. (7 Marks)