Question 1:

1. Prepare Trial Balance from the following balances of Mr. Akhtar as on 31.12.2016:
2. Required: Prepare Statement of Profit or Loss and Statement of Financial Positions.

Capital Rs. 420,000 Cash in hand Rs. 25,000 Building Rs. 115,000

Cash at bank Rs. 84,700 Machinery Rs. 60,000 Sundry Creditors Rs. 68,000

Furniture Rs. 11,000 Rent Rs. 48,000 Car Rs. 68,000

Opening stock Rs. 86,000 Commission Rs. 1,400 Rates and Taxes Rs. 2,600

Purchases Rs. 94,000 Bad debts Rs. 3,200 Sales Rs. 196,000

Insurance Rs. 2,400 General Expenses Rs. 800 Sundry debtors Rs. 16,200

Reserve for doubtful debts Rs. 7,300 Salaries Rs. 94,000 Closing Stock Rs. 12,000

Unearned Revenue Rs. 16,000 Interest received Rs. 5,000