PRACTICE AND ASSESSMENT ACTIVITY
The year end accounts of XYZ Welfare Society on December, 31, 2007 appeared as under:
Accounts Rs. Assets Liability Equity Income Expense
Cash 100,000
Rent payable 125,000
Plant and equipment 500,000
Accrued expenses/expenses payable 50,000
Investments 125,000
Capital /accumulated surplus 200,000
Other liabilities 50,000
Rent payable 220,000
Loan portfolio/loan receivable 500,000
Accounts receivables 100,000
Interest income 150,000
Subscription fee received 40,000
Loan loss provision expense 20,000
Utilities expenses 40,000
Rent expense 30,000
Stock in store 200,000
Donor’s liability 600,000
Short term borrowing 35,000
Accounts payables 60,000
Loan payable 45,000
Cash at bank 50,000
Retained earning 25000
Furniture 100,000
Interest income 150,000
Subscription fee received 40,000
Loan loss provision expense 20,000
Utilities expenses 40,000
Rent expense 30,000
Processing fee received 5000
Wages expense 50,000
Membership fee 10,000
Cash donations 200,000
Required:
1. Identify the nature of each item (√) in relevant column.
2. Prepare Income Statement for the period ending December 31, 2007 using the format
attached.
3. Prepare Balance sheet for the period ending December 31, 2007 using the format
attached.
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