The following trial balance was extracted from the books of Amal Ltd on 31/12/2020   Dr Cr   $ $ Share Capital:     300,000 Ordinary shares of $ 1 each   300,000 Share Premium   22,500 Retained Earnings   44,610 Land (Cost) 420,000   Office Building 73,500 Furniture & Fittings (Cost) 13,500   Accumulated Depreciation on: Furniture and fittings 9,000 Office building 7,500 Other Income Received 12,000 Trade Receivables 28,425   Trade Payables   19,395 Inventory in trade 1.1.2020 28,395   Allowance for Bad Debts   1,350 Interest on Loan 1,800   Bank Overdraft   3,735 Salaries of Administrative staff 35,040   Rent and Rates 6,975   Marketing Expenses 3,180   Advertisement Expense 4,500 Bad Debts 2,265   Purchases 247,110   Sales   423,600  Dividend paid   15,000     843,690 843,690 You are given the following information: Inventory in trade on 31 December 2020 amounted to OMR 30,705. Depreciation on Furniture and fittings at 7.5% per annum on reduced balance method and it is to be charged to Cost of Sales. Also, charge Depreciation on office building at the rate of 15% straight line method and to be charged to Administrative Expenses. Provide tax @ 30%. In compliance with IAS-1. You are required to prepare: An Income statement for the year ended 31 December 2020.

The following trial balance was extracted from the books of Amal Ltd on 31/12/2020   Dr Cr   $ $ Share Capital:     300,000 Ordinary shares of $ 1 each   300,000 Share Premium   22,500 Retained Earnings   44,610 Land (Cost) 420,000   Office Building 73,500 Furniture & Fittings (Cost) 13,500   Accumulated Depreciation on: Furniture and fittings 9,000 Office building 7,500 Other Income Received 12,000 Trade Receivables 28,425   Trade Payables   19,395 Inventory in trade 1.1.2020 28,395   Allowance for Bad Debts   1,350 Interest on Loan 1,800   Bank Overdraft   3,735 Salaries of Administrative staff 35,040   Rent and Rates 6,975   Marketing Expenses 3,180   Advertisement Expense 4,500 Bad Debts 2,265   Purchases 247,110   Sales   423,600  Dividend paid   15,000     843,690 843,690 You are given the following information: Inventory in trade on 31 December 2020 amounted to OMR 30,705. Depreciation on Furniture and fittings at 7.5% per annum on reduced balance method and it is to be charged to Cost of Sales. Also, charge Depreciation on office building at the rate of 15% straight line method and to be charged to Administrative Expenses. Provide tax @ 30%. In compliance with IAS-1. You are required to prepare: An Income statement for the year ended 31 December 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question C4

The following trial balance was extracted from the books of Amal Ltd on 31/12/2020

	Dr	Cr
	$	$
Share Capital:
300,000 Ordinary shares of $ 1 each		300,000
Share Premium		22,500
Retained Earnings		44,610
Land (Cost)	420,000
Office Building	73,500
Furniture & Fittings (Cost)	13,500
Accumulated Depreciation on:
Furniture and fittings		9,000
Office building		7,500
Other Income Received		12,000
Trade Receivables	28,425
Trade Payables		19,395
Inventory in trade 1.1.2020	28,395
Allowance for Bad Debts		1,350
Interest on Loan	1,800
Bank Overdraft		3,735
Salaries of Administrative staff	35,040
Rent and Rates	6,975
Marketing Expenses	3,180
Advertisement Expense	4,500
Bad Debts	2,265
Purchases	247,110
Sales		423,600
Dividend paid	15,000
	843,690	843,690

You are given the following information:

Inventory in trade on 31 December 2020 amounted to OMR 30,705.

Depreciation on Furniture and fittings at 7.5% per annum on reduced balance method

and it is to be charged to Cost of Sales. Also, charge Depreciation on office building

at the rate of 15% straight line method and to be charged to Administrative Expenses.

Provide tax @ 30%.

In compliance with IAS-1. You are required to prepare:

An Income statement for the year ended 31 December 2020.

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