Question 2: The following balances were taken from Majan Company. [1.5 Marks]

Service revenues R.O 10 000

Interest revenues R.O 30 000

Salaries R.O 5 000

Interest expense R.O 2 000

Depreciation expenses R.O 1 600

Rent expenses R.O 2 400

Electricity Expenses R.O 4 000

Phone expenses R.O 4 000

At the end of accounting period appeared that:

Interest revenues 2 600 / month

Service revenues R.O 80 / month

Rent expenses R.O 400 / month.

Electricity expense R.O 1000 / month.

Phone expense R.O 1 600 / month

Interest expense R.O 1 400

Salaries R.O 400 / month.

Required : Prepare income statement according to cash and accrual basis

	Income statement
	Accrual basis	Cash basis
Revenues:
Total Revenues
Less expenses:
Total expenses
Net Income