Question-2: The following balances were taken from Nizwa Company as at 31.12.2019 [20 Marks] Name of accounts Balances Sales 370 000 Creditors 50 000 Overdraft 35 000 Loans 105 000 Notes Payable 25 000 Cash 50 000 Bank 125 000 Debtors 50 000 Marketable securities 60 000 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 20 000 Interest Revenues 20 000 Rent Revenues 10 000 Opening Stock 45 000 Purchases 225 000 Sales Returns 35 000 Purchases Returns 35 000 Capital Required: Prepare the Trial Balance and find out the Capital Prepare Income statement According to Accrual basis Prepare Balance Sheet. At the end of accounting period found that Closing stock $ 50 000 Rent Expenses 1000/Month Salaries Expenses 500/Month Electricity Expenses 2000/Month Phone Expenses 5000 not paid yet Interest Expenses 1000/Month Insurance Expenses 1000/ Month Services Revenues 3000/Month Interest Revenues 1000/ Month Rent Revenues 500/Month Trial Balance Dr [2 Marks] Cr Name of accounts Sales 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 Purchases Sales Returns Purchases Returns Capital Income statement [8 Marks) ) Net.. Less ........:- Gross..... Less ...............: Add ..............: Net.......... Balance sheet [10 Marks] Current Liabilities: Current Assets Long term Liabilities: Fixed Assets: Owner's equity