Income statement for the year ending 31/12/2015

Particulars Amount
Sales
Accrued Interest

Total Revenues (A)

Less: Expenses
Cost of goods sold
Salary paid 5000
Add: Outstanding salary 2000
Outstanding Rent
Interest on Capital
Advertisement charges

Total Expenses (B)

Net Income (A-B)/Retained Earnings

Net Amount
70000
1000

71000

50000

7000
3000
3000
1000

64000

7000
 Balance sheet as on 31/12/2015
ASSETS
Current Assets:
Cash
Accounts Receivable
Inventories(70000-50000)
Accrued Interest
Non current Assets:
Total Assets
AMOUNT LIABILITIES
Current Liabilities
70000 Accounts Payable
70000 Outstanding rent
20000 Outstanding salary
1000 Long Term Debt
Owner's Equity
Capital
Add:Interest on Capital
Less: TV purchased
Less: Cash withdrawn for personal use
Add:Retained Earnings
161000 Total Liabilities+ Owner's Equity
 AMOUNT

50000
3000
2000

100000
3000
-2000
-2000
7000 106000

161000
 Calculation of Closing Cash Balance as on 31/12/2015
Opening Cash Balance 0

Add:Receipts
Cash capital 100000

Total Receipts (A) 100000

Less: Expenses
Salary paid 5000
Cash purchases 20000
TV purchased for personal use(Drawings) 2000
Cash withdrawn for personal use 2000
Adertisement charges paid 1000

Total Payments (B) 30000

Closing Cash Balance(A-B) 70000