Question 3. The following balances were taken from Malabar Company as at 31.12.2018 Name of accouus Balances Purchases 250 000 Creditors 60 000 Overdraft 36 000 Loans 120 000 Notes Payable 25 000 Cash 50 000 Bank 150 000 Debtors 50 000 Marketable securities 50 000 Land 100 000 Buildings 120 000 Cars 70 000 Machines 90 000 Furniture 10 000 Rent Expenses 10 000 Salaries Expenses 10 000 Electricity Expenses 20 000 Phone Expenses 20 000 Interest Expenses 15 000 Insurance Expenses 15 000 Bad Debts 15 000 Depreciation Expenses 18 000 Services Revenues 30 000 Interest Revenues 19 000 Rent Revenues 27 000 Opening Stock 45 000 Sales 400 000 Sales Returns 25 000 Purchases Returns 25 000 Capital Required: Prepare the trial balance and find Capital, Prepare Income statement According to Accrual basis Prepare Closing entries Prepare Balance Sheet. At the end of accounting period found that Closing stock $ 50 000 Services Revenues 2 000/Month | Interest Revenues 2000/Month Rent Revenues 2000 /Month Rent Expenses 2 000 /Month Salaries Expenses 1000/Month 9 Electricity Expenses Phone Expenses Interest Expenses Insurance Expenses 2 000 Month 4 000 not paid yet 1 000/Month 1 000/Month Trail balance Dr. Cr. Name of accounts Purchases Creditors Overdraft Loans Notes Payable Cash Bank Debtors Marketable securities Land Buildings Cars Machines Furniture Rent Expenses Salaries Expenses Electricity Expenses Phone Expenses Interest Expenses Insurance Expenses Bad Debts Depreciation Expenses Services Revenues Interest Revenues Rent Revenues Opening Stock Sales Sales Returns Purchases Returns Capital Income statement Sales Net Sales Less Cost of Sales: Gross Profit Less Expenses: Add Revenues: Net Profit Current Assets: Balance sheet Current Liabilities Long-term Liabilities Fixed Assets Owner's Equity Closing entries Explanation Dr XXX Cr Income summary Close the above smories into Income SATY XXX Income Summary Close the above entries into Income Swimary Income Summary XXX Owner's Capital Close the income summary (in case of profit) XXX