1. INCOME STATEMENT T he statement prepared to know the gross income and the net income at the end of a particular period is known as income statement.

2. BALANCE SHEET T he balance sheet is the list of assets and equities prepared at a specific time.It is also known as the statement of financial condition of a firm. It is normally prepared at close of each year.

3. From the following trial balance of Aftab Trading corporation, prepare income statement and balance sheet for the year ended December 31,2008 LIST OF ACCOUNTSDrCr Cash1070 Accounts receivable2230 Machinery12980 Accumulated Depreciation of Machinery550 Accounts Payable1500 Notes Payable70 Capital8100 Revenue from Sales13110 Traveling Expenses5900 Trade expenses1150 Interest200 Commission200 TOTAL23530

4. AFTAB TRADING CORPORATION INCOME STATEMENT FOR THE YEAR ENDED DEC.31,2008 REVENUE FROM SALES Afs. 13110 Less: Operative expenses Travelling expenses 5900 Commission paid 200 Trade expenses 1150 Operative profit Add: Other Income Interest received Net income 7250 5860 200 6060

6. AFTAB TRADING CORPORATION BALANCE SHEET AS ON DECEMBER 31,2008 ASSETS AMOUNTLIABILITIES AND CAPITAL AMOUN T CURRENT ASSETS Cash Accounts Receivable Total Fixed Assets Machinery 12980 Less: Acc: Dep. 550 Current Liabilities Accounts payable Notes payable Total Owner's Equities Capital 8100 Add: Net Income 6060 1500 70 1570 14160 1070 2230 3300 12430 Total assets 15730 Total Equities 15730

7. Following is the trial balance of Raja Mohammad yunas khan traders for the year ended june 30.1990 Rs. 200.00 1500.00 550.00 70.00 3100.00 18010.00 970.00 2980.00 2230.00 3000.00 2900.00 1000.00 150.00 200.00 10000.00 Cash Machinery Accounts receivable Salaries Traveling expenses Freight & Octori Miscellaneous expenses Commission Interest received Accounts payable Accumulated depreciation – machinery Notes payable Capital (O.E) Revenue from sales Purchases 23430.00 Total

8. Raja Muhammad Younas Khan Traders Income Statement For the year ended june 30,1990 Afs Revenue from sales Less: Operative Expenses Salaries Travelling expenses Freight&Octroi Misc.Expense Commission Purchases 3000 2900 1000 150 200 10000 18010 17250 Operative Profit760 200 960 Add: Other Income Interest Net Income

9. Raja Muhammad Younas Khan Income Statement As on June 30,1990 Assets Amount Liabilities+Owner,s Equity Amount Current Asset Cash Accounts Receivable Total Fixed Assets Machinery 2980 _ Acc: Depreciation 550 970 2230 3200 2430 Current Liabilities Accounts payable Notes Payable Total Owner's Equities Capital 3100 +Net Income 960 1500 70 1570 4060 Total5630Total5630

10. Following is the trial balance of Saqlain Transport Co. for the year ended on 31 st December,2005 List of accountsDr Cr Cash9700 Accounts Receivable22300 Machinery124300 Accounts Payable15000 Notes Payable700 Capital81000 Revenue from services130100 Fuel expenses59000 General expenses 11500 Commission Received2000 Interest paid2000 Total228800

11. Saqlain Transport Company Income Statement For the year ended on 31 st December,2005 Afs Revenue from services Less: Operative Expenses F uel expenses General expenses 59000 11500 130100 70500 Operative Income 59600 Add: Other income Commission received 2000 Less: Other expenses Interest paid 61600 2000 Net income59600

12. Saqlain T ransport Company Balance Sheet As on 31 st December,2005 Assets AmountLiabilities+Owner,s Equity Amount Current Assets Cash Accounts Receivable Total Fixed Assets Machinery 9700 22300 32000 124300 Short term liabilities Accounts payable Notes payable Total Owner's Equities Capital 81000 +Net Income 59600 15000 700 15700 140600 Total 156300 Total156300