Question 3.The following balances were taken from Malabar Company as at 31.12.2018

[5 Marks]

Name of accounts	Balances
Purchases	250 000
Creditors	60 000
Overdraft	35 000
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 2 000 /Month
• Rent Revenues 2 000 /Month
• Rent Expenses 2 000 /Month
• Salaries Expenses 1000/Month
• Electricity Expenses 2 000 /Month
• Phone Expenses 4 000 not paid yet
• Interest Expenses 1 000/Month
• Insurance Expenses 1 000/ Month