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Question 2: The following balances were taken from Majan Company. [1.5 Marks]
Service revenues R.O 10 000
Interest revenues R.O 30 000
Salaries R.O 5 000
Interest expense R.O 2 000
Depreciation expenses R.O 1 600
Rent expenses R.O 2 400
Electricity Expenses R.O 4 000
Phone expenses R.O 4 000
At the end of accounting period appeared that:
Interest revenues 2 600 / month
Service revenues R.O 80 / month
Rent expenses R.O 400 / month.
Electricity expense R.O 1000 / month.
Phone expense R.O 1 600 / month
Interest expense R.O 1 400
Salaries R.O 400 / month.
Required : Prepare income statement according to cash and accrual basis
| | Income statement |
| | Accrual basis | Cash basis |
| Revenues: | | |
| | | |
| | | |
| Total Revenues | | |
| Less expenses: | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Total expenses | | |
| Net Income | | |
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