Galaxy Hardware Pvt Ltd deals in the trading of hardware goods.

Mr Robin – General Manager of

company is approaching you to assist him in preparing his Annual Financial Statements as the accountant
of the company left the job. Before leaving the job the Accountant had prepared the Trial balance for the
year ending December 2021 which is given below

Trial balance of Galaxy Hardware Pvt Ltd for the year Ending Dec 31, 2021

Particulars Debit Credit

Store furniture 15000
Acc Depreciation: Store furniture 3000
Merchandise Inventory 42900
Office Supplies 3910
Trade Receivables 6200
Cash 1810
Prepaid Store rent 14400
Prepaid Insurance 1200
Trade Payables 4980
Share Capital 20000
Retained Earnings 3890
Sales 102380
Sales returns & Allowances 980
Sales Discount 1610
Purchase 28340
Purchase returns 650
Purchase Discount 870
Freight Inwards 3960
Office Salaries Expenses 4400
Sales Salaries Expenses 7200
Advertisement Expenses 1600
Delivery Expenses 900
Telephone Expenses 760
Insurance Expenses 600

135770 135770

However, the following information was not incorporated by the accountant while preparing Trial
Balance
i) Depreciation on Furniture of Rs 1500 not recorded
ii) Office Supplies lying in Store worth Rs 1640
iii) Store rent was paid on Jan 1, 2021 for 24 Months
iv) The Insurance policy was taken for a year from 1 July 2021
v) Office Salaries which still not paid Rs 400
vi) Income tax due was Rs 14000
vii) Closing Stock of Rs 36400 still lying in Godown
You are required to Prepare Income Statement & Balance Sheet for company