QUESTION NO.2

The following are the details of accounts of Mr. Abdullah

Account Details	Amount
Capital at the beginning	150,000
Purchases	153,750
Drawings	8,230
Salaries Expense	24,370
Return Inwards	2,920
Account Receivables	148,760
Sales Revenue	252,470
Merchandise inventory beginning	37,240
Stationery	1,720
Advertisement expenses	16,750
Accounts Payables	64,000
Discount received from suppliers	6,000
Machinery at cost	28,800
Motor Vehicle at cost	50,740
Bank Overdraft	10,000
Bank loan (long term)	35,000
Transportation on purchases	4,840
Transportation on sales	8,630
Cash at bank	30,720
Capital at the beginning	150,000
Purchases	153,750
Drawings	8,230

Other Information:

1. Closing Stock on December 31, 2019 OMR 16.500

2. Salaries outstanding OMR 6,000

3. Rent paid in advance OMR 2,000

4. Commission earned but not received OMR 10,000

5. Depreciate machinery by 10%

Required:-

1. Prepare Income Statement for the year ended 31^st December 2019. (2 Marks)
2. Balance Sheet as on 31^st December 2019. (3 Marks)