Income statement and Balance Sheet for given Trial Balance
Description Debit Credit
Capital 125,000
Purchase 110,000
Stock 5000
Administration expense 10,000
Salary 24,000
Advertisement 4000
Discounts 4500 6000
Motor Vehicle 130,000
Furniture 70,000
Debtor 16,000
Electricity 3000
Rent and rate 17,000
Stationary 4500
Selling expenses 10,000
Sales commission 7000
Carriage inward 500
Sales 250,000
Interest received 6000
Insurance 11,500
Provision for depreciation:
Motor Vehicle 40,000
Furniture 35,000
Creditor 9000
Cash at bank 20,000
Cash in hand 50,000
Prepayments 8000
Bank loan 15% 50,000
Carriage-outward 25,000
Additional Information
Closing Stock-12,000rupees
NRV-10,000
Entirely Interest payable for bank loan
Insurance paid in advance 1500/=
1000/= payable for electricity
1000/= receivable for interest
Required,
Prepare Income statement and Balance sheet.