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Income Statement and Balance Sheet

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24 views4 pages

Income Statement and Balance Sheet

Uploaded by

sarah.p49
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Q1 The trial balance of the Khalid Traders for the year ended December 31,2004 is as under:

Debit Credit
Cash 10,000
Accounts Receivable 24000
Merchandise Inventory (1-1-2004) 20000
Pre-Paid Insurance 3000
Office Equipment 100000
Allowance for depreciation (Office Equiment) 24000
Accounts Payable 16000
Capital (1-1-2004) 104600
Drawings 12000
Sales 160000
Sales discount 8000
Purchases 80000
Purchases return & allowances 10000
Trnasportation in 11600
Advertising expense 14600
Salaries expense 24000
Insurance Expense 5000
Depreciation expense (office equipment) 4000
Salaries Payable 4000
Prepaid advertising 2400
Bad debts expense 2400
Allowance for Bad Debts 2400
321,000 321,000

Merchandise Inventory on December 31,2004 was Rs 30,000


a ) Prepare Income Statement
b ) Prepare Balance Sheet
Q1 The trial balance of the Raheel Traders for the year ended December 31,2005 is as under:

Debit Credit
Cash 18,000
Accounts Receivable 43200
Merchandise Inventory (1-1-2005) 36000
Pre-Paid Insurance 5400
Office Equipment 180000
Allowance for depreciation (Office Equiment) 43200
Accounts Payable 28800
Capital (1-1-2004) 188280
Drawings 21600
Sales 288000
Sales discount 14400
Purchases 144000
Purchases return & allowances 18000
Trnasportation in 20880
Advertising expense 26280
Salaries expense 43200
Insurance Expense 9000
Depreciation expense (office equipment) 7200
Salaries Payable 7200
Prepaid advertising 4320
Bad debts expense 4320
Allowance for Bad Debts 4320
577,800 577,800

Merchandise Inventory on December 31,2005 was Rs 54,000


a ) Prepare Income Statement
b ) Prepare Balance Sheet
Q3 The following is the Trial balance of Mr. Yaseen as on June 30,2005
Debit
Cash 70,000
Notes Receivable 60,000
Accounts receivable 110,000
Merchandise Inventory (July 1,2004) 120,000
Supplies 21,000
Furniture 80,000
Drawing 20,000
Purchases 850,000
Wages expenses 161,600
Rent expenses 50,000
Interest expenses 4,000
Supplies expense 10,000
Depreciation expense 5,000
Prepaid wages 15,000
Interest income receivable 700
1,577,300

Merchandise Inventory on June 30,2005 was Rs 85,000


Credit
Allowance for Depreciation on furniture 21,000
Notes Payable 140,000
Capital (July 1,2004) 270,000
Sales 1,020,000
Interest Income 2,200
Accounts Payable 116,000
Wages Payable 6,600
Unearned Interest Income 1,500

1,577,300

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