Reference no: EM132974553

Question: Zeeshan Company Limited is registered with an authorized capital of Rs.1,000,000 divided into the ordinary share of Rs.100 each. The Preclosing Trial Balance of the company on December 31, 2000, is as follows:
Title of Account__________________________________Debit Rs.________________Credit Rs.
Cash at Bank.................................................................80,000................................
Accounts Receivable...................................................90,000...............................
Allowance for Bad Debts......................................................................................... 5,000
Merchandise Inventory (Beg) ...................................85,000................................
Machinery.......................................................................200,000..............................
Accumulated Depreciation (Machinery)............................................................... 25,000
Building .......................................................................... 300,000 ...........................
Accumulated Depreciation (Building) ................................................................. 30,000
Office Equipment ........................................................ 60,000 ..............................
Accumulated Depreciation (Office Equipment) ............................................... 10,000
Accounts Payable ..................................................................................................... 24,000
Share Capital ............................................................................................................. 600,000
Retained Earnings .................................................................................................... 10,000
Sales ............................................................................................................................ 365,000
Sales Return ............................................................... 15,000 ................................
Purchases ................................................................... 105,000 ..............................
Purchases Return ..................................................................................................... 10,000
Salaries Expense ...................................................... 25,000 ................................
Transportation-in ..................................................... 5,000 ...................................
Rent Expense ............................................................ 44,000 ................................
Insurance Expense .................................................. 25,000 ................................
Advertising Expense ............................................... 15,000 .................................
Director's Fee ............................................................ 15,000 .................................
Auditor's Fee ............................................................. 15,000 .................................
.......................................... Total ................................. 1,079,000 ............................ 1,079,000

Data for Adjustment:

-Merchandise Inventory Ending Rs.95,000
-Accrued Salaries Rs.2,500
-Unpaid Rent Rs.6,000
-Allowance for Depreciation Machinery Rs.20,000; Building Rs.15,000; Office Equipment Rs.5,000

Required:

-Prepare Income Statement
-Prepare Statement of Retained Earnings
-Prepare Balance Sheet