e.9.: Income Statement, Balance Sheet \& Statement of Retalned Earnings (Ltd Companles)
Q1. Unlon Paints Ltd. has an Authorized Capital of Rs. 1,000,000 divided Into shares of Rs. 100 each. Following is the Pre-closing Trlal balance as on December 31, 2017;
\begin{tabular}{lrr}
Cash & & \\
Accounts Receivable & 317,000 Pald up Capital & \\
Inventory (Jan 01, 2017) & 30,000 Allowance for Bad Debts & 1,500 \\
Machinery & 140,000 Accounts Payable & 25,000 \\
Building & 400,000 Retained Earnings & 200,000 \\
Purchases & 700,000 Sales & \( 800,000- \) \\
Carrlage in & \( -300,000 \) Commisslon Income & 3,500 \\
Salaries Expenses & \( 2,00010 \% \) Bonds Payable & 100,000 \\
Director's fee & 18,000 & \\
Rent Expense & 10,000 & \\
Office Supplies & 8,000 & \\
Sales staff commission & 2,000 & \\
& 3,000 & \( 1,930,000 \) \\
\hline
\end{tabular}
Additional Information as on December 31, 2017:
1. Depreciation is estimated on machinery @ \( 10 \% \) \& Bullding @ \( 15 \% \).
2. Accrued Rent Expense Rs4,000.
3. Commission Recelvable Rs1,500.
4. Provisions for Bad Debts to be maintained @ \( 0.625 \% \) of Sales.
5. Merchandise Inventory Rs. 70,000 .
6. Tax payable Rs40,000.
REQUIRED:
Prepare:
(a) Income Statement 1
(b) Balance Sheet
(c) Statement of Retained Earnings
