On March 31, 2024, the financial records of Yellow Stone Ltd. showed the following: The...
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Accounting
On March 31, 2024, the financial records of Yellow Stone Ltd. showed the following: The capital account had a credit balance of ?500,000, drawings amounted to ?60,000, sales were recorded at ?750,000, purchases were ?400,000, wages totaled ?90,000, utilities expenses were ?25,000, rent expense was ?50,000, miscellaneous expenses stood at ?20,000, and the profit and loss account had a credit of ?25,000. Based on these figures, determine the net income for Yellow Stone Ltd.
Requirements:
Identify total debits and credits.
Calculate net income.
Discuss the role of miscellaneous expenses in the overall financial performance.
Evaluate the adequacy of the capital account balance.
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