Following is the Trail balance of Alpha Ltd company as on 31" December 2019; Particulars OMR Particulars OMR Opening

Question

Following is the Trail balance of Alpha Ltd company as on 31" December 2019; Particulars OMR Particulars OMR Opening Stock 40,000 Capital 200,000 Cash 22,000 Purchase returns 6,400 Bank 27,000 Sales 480,000 Administrative salaries 16,000 Purchase Discount 3,600 Stationary 8.400 Accounts payable 14,000 Distribution 5,600 Retained Earnings 6,000 Sales offices rent 3,000 Creditors 12.000 Buildings 85,000 Tax payable 5,000 Salesmen salaries 18,000 Purchases 300,000 Purchase Transportation 10,000 Sales Allowance and Discount 6,000 Sales returns 4,000 Entertainment 4,000 Furniture 38,000 Accounts receivable 42,000 Machinery 48,000 Cars 20,000 Land 30,000 727,000 727,000 Note: Closing stock as on 31 December 2019 is OMR 60,000 Requirement: You are required to Prepare Income Statement and Balance sheet

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ANSWER: - INCOME STATEMENT OF M/S.ALPHA LTD FOR THE YEAR ENDED 31ST DECEMBER 2019 PARTICULARS OMR OMR PARTICULARS OMR OMR TO OPENING STOCK 40,000 BY SALES 480,000 TO PURCHASES 300,000 LESS: - RETURNS -4,000 476,000 ADD: - TRANSPORTATION 10,000 LESS: - RETURNS -6,400 303,600 BY PURCHASE DISCOUNT 3,600 BY CLOSING STOCK 60,000 TO GROSS PROFIT C/D 196,000 TOTAL 539,600 TOTAL 539,600 TO ADMINISTRATIVE SALARY 16,000 BY GROSS PROFIT B/D 196,000 TO STATIONERY 8,400 TO DISTRIBUTION 5,600 TO ENTERTAINMENT 4,000 TO SALES OFFICE RENT 3,000 TO SALESMEN SALARY 18,000 TO SALES ALLOWANCES AND DISCOUNT 6,000 TO NET PROFIT 135,000 TOTAL 196,000 196,000 BALANCE SHEET OF M/S.ALPHA AS ON 31ST DECEMBER 2019 LIABILITIES OMR OMR ASSETS OMR OMR CAPITAL 200,000 LAND 30,000 RETAINED EARNINGS 6,000 BUILDINGS 85,000 NET PROFIT AS PER INCOME STATEMENT 135,000 141,000 FURNITURE 38,000 MACHINERY 48,000 ACCOUNTS PAYABLE 14,000 CARS 20,000 CREDITORS 12,000 ACCOUNTS RECEIVABLE 42,000 TAX PAYABLE 5,000 CASH 22,000 BANK 27,000 CLOSING STOCK 60,000 TOTAL 372,000 TOTAL 372,000

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Following is the Trail balance of Alpha Ltd company as on 31" December 2019; Particulars OMR Particulars OMR Opening Stock 40,000 Capital 200,000 Cash 22,000 Purchase returns 6,400 Bank 27,000 Sales 480,000 Administrative salaries 16,000 Purchase Discount 3,600 Stationary 8

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Archived Solution

PARTICULARS	OMR	OMR	PARTICULARS	OMR	OMR
TO OPENING STOCK		40,000	BY SALES	480,000
TO PURCHASES	300,000		LESS: - RETURNS	-4,000	476,000
ADD: - TRANSPORTATION	10,000
LESS: - RETURNS	-6,400	303,600	BY PURCHASE DISCOUNT		3,600
			BY CLOSING STOCK		60,000
TO GROSS PROFIT C/D		196,000
TOTAL		539,600	TOTAL		539,600

TO ADMINISTRATIVE SALARY		16,000	BY GROSS PROFIT B/D		196,000
TO STATIONERY		8,400
TO DISTRIBUTION		5,600
TO ENTERTAINMENT		4,000
TO SALES OFFICE RENT		3,000
TO SALESMEN SALARY		18,000
TO SALES ALLOWANCES AND DISCOUNT		6,000
TO NET PROFIT		135,000
TOTAL		196,000			196,000

LIABILITIES	OMR	OMR	ASSETS	OMR	OMR
CAPITAL		200,000	LAND		30,000
RETAINED EARNINGS	6,000		BUILDINGS		85,000
NET PROFIT AS PER INCOME STATEMENT	135,000	141,000	FURNITURE		38,000
			MACHINERY		48,000
ACCOUNTS PAYABLE		14,000	CARS		20,000
CREDITORS		12,000	ACCOUNTS RECEIVABLE		42,000
TAX PAYABLE		5,000	CASH		22,000
			BANK		27,000
			CLOSING STOCK		60,000
TOTAL		372,000	TOTAL		372,000