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Question 1.The following balances were taken from Chico Company as at 31.12.2018

[30 Marks]

Name of accounts
Cash	200 000
Creditors = Accounts Payable	100 000
Buildings	10 000
Cars	30 000
Overdraft	50 000
Debtors = Accounts receivable	10 000
Bank	400 000
Furniture	15 000
Land	10 000
Loans	200 000
Marketable Securities	10 000
Machines	15 000
Purchases	80 000
Sales	200 000
Sales Returns	10 000
Purchases Returns	20 000
Opening Stock	15 000
Rent expenses	8 000
Interest Expenses	10 000
Salaries expenses	15 000
Electricity Expenses	12 000
Phone Expenses	15 000
Utilities Expenses	8 000
Services revenues	10 000
Rent Revenues	20 000
Interest Revenues	30 000
Capital	.

Additional Information

1. Closing stock was 60 000

2. Rent expenses 2000 not paid yet

3. 3000 paid in advance

4. Salaries expenses 1500/month

5. Electricity expenses 800/ month

6. Phone expenses 16000 annually

7. Utilities expenses 7000 annually

8. Service revenues 2000/month

9. Rent revenues 2000/ month

10. Interest revenues 3000/month

Required:

Prepare the trial balance and find Capital, [6 Marks]

Prepare Income statement According to Accrual basis [14 Marks]

Prepare Balance Sheet. [10 Marks]

Trial Balance

Name of accounts	Dr	Cr
Cash
Creditors = Accounts Payable
Buildings
Cars
Overdraft
Debtors = Accounts receivable
Bank
Furniture
Land
Loans
Marketable Securities
Machines
Purchases
Sales
Sales Returns
Purchases Returns
Opening Stock
Rent expenses
Interest Expenses
Salaries expenses
Electricity Expenses
Phone Expenses
Utilities Expenses
Services revenues
Rent Revenues
Interest Revenues
Capital

Income statement

Sales
Less: Sales Returns
Net Sales
Less: Cost of sales
Opening Stock
Purchases
Purchases Returns
Closing Stock
Gross Profit
Less:Expenses:
Add :Revenues

Balance sheet

Current Assets: Fixed Assets	Current Liabilities Long-term Liabilities Owners Equity

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