Date Particulars DR CR

b) Insurance Exp 1120

Insurance Payable 1120

c) Heating and Lighting expenses 1360

Heating and Lighting payable 1360

d) Rates expense 5435

Telephone payable 5435

e) Provision for Doughtful debts exp 735

Accumulated for Depreciation 735
 Mr. Ali
Income statement
As on 30 April 2020
Rs Rs Rs
Sales 259,870
Less: Return inward (5,624)
Less: Sales Discount (2,306)
Net Sales 251,940
Less: Cost of good sold
Opening stock 15,654
Add: Purchases 135,680
Add: Carriage inward -
+
Less: Return Out (13,407) -
Less: Purchases discount (1,750)
Net Purchases 120,523
Goods available for sale 136,177
Less: Closing stock (17,750)
Cost of Good Sold (118,427)
Gross Profit 133,513
Less: Operating Expenses
Carrige outward + Inward 16,392
Rent, Rate and Insurance 32,528
Heating and Lighting 12,370
Postage, stationery and telephone 2,410
-
Advertising 5,980
Salaries and wages 38,521
Bad debts expense 2,008
Depreciation 12,074
Provision for doubtful debts 735
Total Operating Expenses (123,018)
Net Profit 10,495
 Mr. Ali
Balance sheet
As on 30 April 2020

Amount Amount
Fixtures and fittings 120,740 Creditor
Accrued Expenses
Less Dep on FF and Van (63,020)
NBV 57,720 Total Current Liabilities

Toatal NCA 57,720

Currnt Assets Onwer;s Equity

Closing Stock 17,750 Opening Capital
Debtors 24,500 Less Drawing
Less Prov for doubt ful debts (1,247) Add: Net profit
Cash in Hand 534
Cash at Bank 4,440
Prepaid Business Rates -
Toatal Current Assets 45,977
Net Assets/ Capital employed 103,697 Net Assets/ Capital employed
Amount Amount
19,840
7,915

27,755

83,887
(18,440)
10,495
75,942

103,697