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.

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.

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

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

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 Less: Acc: Dep. 550 Current Liabilities Accounts payable Notes payable Total Owner's Equities Capital 8100 Add: Net Income Total assets Total Equities 15730

Following is the trial balance of Raja Mohammad yunas khan traders for the year ended june Rs 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 Total

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 Operative Profit Add: Other Income Interest Net Income

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 Current Liabilities Accounts payable Notes Payable Total Owner's Equities Capital Net Income Total5630Total5630

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 Machinery Accounts Payable15000 Notes Payable700 Capital81000 Revenue from services Fuel expenses59000 General expenses Commission Received2000 Interest paid2000 Total228800

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 Operative Income Add: Other income Commission received 2000 Less: Other expenses Interest paid Net income59600

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 Short term liabilities Accounts payable Notes payable Total Owner's Equities Capital Net Income Total Total156300