Question 2: The following balances were taken from Majan Company. [10 Marks]

Service revenues R.O 5 000

Interest revenues R.O 15 000

Salaries R.O 2 500

Interest expense R.O 1 000

Depreciation expenses R.O 800

Rent expenses R.O 1 200

Electricity Expenses R.O 2 000

Phone expenses R.O 2 000

At the end of accounting period appeared that:

Interest revenues 1300 / month

Service revenues R.O 40 / month

Rent expenses R.O 200 / month.

Electricity expense R.O 500 / month.

Phone expense R.O 800 / month

Interest expense R.O 700

Salaries R.O 200 / month.

Required : Prepare income statement according to cash and accrual basis

Income statement
	Accrual basis	Cash basis