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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

 

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