Q4: Prepare Income Statement and Balance Sheet from the following Trial Balance of Abc Company Trial Balance on 30 September 2020 Debit Credit Owners capital 125,000 Drawings - owners 25,000 Purchases 160,000 Wages 30,000 Opening inventories 25,000 Travelling expenses 5,000 Plant and machinery 105,000 Furniture 45,000 Cash and cash equivalents 59,000 Accounts receivable 50,000 Accounts payable 33,000 Bank loan 50,000 Rent expenses 6,000 Marketable securities 58,000 Purchase returns 12,000 Sales returns 5,000 Miscellaneous expenses 4,000 Stationery expenses 8,000 Salary expenses 25,000 Sales 365,000 Service revenue 17,500 Interest 7,500 Total 610,000 610,000 1. Closing inventory was RO. 30,000 2. Salary expenses of RO. 1,500 were outstanding. 3. Cash collected for the services to be performed in future periods is RO. 5500 4. Depreciation rate for Plant & Machinery is 25% per annum and depreciation expenses for Furniture is 10% per annum.
Q4: Prepare Income Statement and
Balance
Trial Balance on 30 September 2020
Debit
Credit
Owners capital
125,000
Drawings - owners
25,000
Purchases
160,000
Wages
30,000
Opening inventories
25,000
Travelling expenses
5,000
Plant and machinery
105,000
Furniture
45,000
Cash and cash equivalents
59,000
50,000
Accounts payable
33,000
Bank loan
50,000
Rent expenses
6,000
Marketable securities
58,000
Purchase returns
12,000
Sales returns
5,000
Miscellaneous expenses
4,000
Stationery expenses
8,000
Salary expenses
25,000
Sales
365,000
Service revenue
17,500
Interest
7,500
Total
610,000
610,000
1. Closing inventory was RO. 30,000
2. Salary expenses of RO. 1,500 were outstanding.
3. Cash collected for the services to be performed in future periods is RO. 5500
4.
expenses for Furniture is 10% per annum.
Step by step
Solved in 2 steps with 1 images
