Q No.

1
Following information are presented by Zee Company at December 31,2020

TITLE OF ACCOUNT DEBIT CREDIT

Cash 205,400  
Account receivable 154600  
Marketable Securities 75,000  
Equipment 150,000  
Inventory-opening 46,000  
Supplies 8500  
Prepaid rent 4200  
Machine 283,500  
Accumulated depreciation-Machine   2400
Accumulated depreciation-equipment   3000
Account payable   147,000
short term lona   50,000
Capital-Black   475,800
Sales revenue   589,500
Sales return and allowance 25000  
Fee income   36000
Purchases 265,000  
Salary expense 15000  
Purchases return and allowances   1500
Financial Charges 5200  
Rent expense 8400  
Utilities expense 25400  
Insurance expense 6500  
Prepaid Advertising 2500  
Drawing-Black 25000  
     
TOTAL 1,305,200 1,305,200
Additional Information:
Ending inventory Rs.22,500
Tax rate 15%
Depreciation on fixed assets at 5%

Required: a)Prepare Income Statement

b)Prepare Balance Sheet
Q No.2
Following information are presented by Bee Company at December 31,2020
 TITLE OF ACCOUNT DEBIT CREDIT
Cash 271,800  
Account receivable 115000  
Short term investment 56,000  
Plant 256,000  
Inventory-opening 63,000  
Supplies 6000  
Prepaid insurance 6800  
office equipment 290,000  
Accumulated depreciation-plant   56000
Accumulated depreciation-equipment   30000
Account payable   112,000
Note payable   60,000
Capital-Jamal Nasir   690,000
Sales revenue   689,000
Sales return and allowance 25000  
Commission income   36000
Purchases 265,000  
Salary expense 65000  
Purchases return and allowances   1500
Interest expense 6300  
Rent expense 27000  
Utilities expense 45000  
Insurance expense 15600  
Prepaid marketing 36000  
Drawing-Jamal Nasir 125000  
     
TOTAL 1,674,500 1,674,500

Additional Information:
Ending inventory Rs.32,500
Tax rate 10%
Depreciation on fixed assets at 5%
Required: a)Prepare Income Statement
b)Prepare Balance Sheet