Question

1. (a) From the Following unadjusted trial balance details Draw up Multiple step Income Statement for the year ended 31st December 2019. ( 3 marks)
(table )
Trial Balance Debit RO CreditRO
Sales 225,000
Sales returns 5,000
Cost of goods sold 85,000
*Selling expenses xxxxx
Advertisement 7,000
Administrative expenses 12,000
Interst earned 25,000
Interst owed 5,000
Utilties expenses 9,000
Rent -Office 10,000
Depreciation- Office 9,000

Note: *Selling expenses amount will be taken your College ID Number (For Example Your College ID number is 41J 1425, take the Selling expenses as 1425). So every student should use your college ID Number.
Answer in the next page.

Multiple Income Statement for the year ended 31st Dec 2019.

ans:
(table)




1 (b) In the above question, payment of dividend is RO200, Pass all the Closing entries.


1(c) Differentiate between Service Industry income statement and Merchandising Income statement and how to compute cost of goods sold under perpetual and periodic system in your own words. ( 3marks)


2.(a)Compute Ending inventory and Cost of goods sold using LIFO inventory valuation method .

(table)
Date Details Qty Rate RO
Jan1 Beginning balance 200 12 2 400
Jan4 Purchases 300 16 4800
Jan6 Sales 350 25 8750
Jan10 Sales 50 30 1500

(ans in )
(table)
Date /Details /Purchases/ Cost of Goods Sold/
Q R RO Q R RO

/Ending Inventory/
Q R RO



2.(b)Pass Journal entries under perpetual method.
(ans in table )
Credit RO Debit RO Particulars Date

2 (c)
State the Changes of making journal entries in the books of buyer and seller under periodic system.

Q1.(a)

From the Following unadjusted trial balance details Draw up Multiple step Income Statement for the year ended 31st December 2019. ( 3 marks)

Trial Balance Debit RO CreditRO
Sales 225,000
Sales returns 5,000
Cost of goods sold 85,000
*Selling expenses xxxxx
Advertisement 7,000
Administrative expenses 12,000
Interst earned 25,000
Interst owed 5,000
Utilties expenses 9,000
Rent -Office 10,000
Depreciation- Office 9,000
Note: *Selling expenses amount will be taken your College ID Number (For Example Your College ID number is 41J 1425, take the Selling expenses as 1425). So every student should use your college ID Number.

Ans:1a) make table :of

                         Multiple Income Statement for the year ended 31st Dec 2019.






1 (b) In the above question, payment of dividend is RO200, Pass all the Closing entries.  


1(c) Differentiate between Service Industry income statement and Merchandising Income statement and how to compute cost of goods sold under perpetual and periodic system in your own words.                                                                                  ( 3marks)
                                               

Answer 1