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The financial records of Crimson Peak Ltd. for the period ending October 31, 2024, show...

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Question

Accounting

  1. The financial records of Crimson Peak Ltd. for the period ending October 31, 2024, show the following balances:

Capital Account: ?450,000 (Credit)
 Drawings: ?45,000 (Debit)
 Sales: ?700,000 (Credit)
 Purchases: ?350,000 (Debit)
 Wages: ?85,000 (Debit)
 Utilities: ?20,000 (Debit)
 Rent: ?42,000 (Debit)
 Miscellaneous Expenses: ?12,000 (Debit)
 Profit and Loss: ?20,000 (Credit)

Requirements:

  1. Calculate the total debits and credits.
  2. Compute the net income.
  3. Evaluate the effect of miscellaneous expenses on overall financial performance.
Suggest measures to improve net income.

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