Prepare a multi-step income statement for the year ended December 31, 20X9, assuming opening stock is zero.

Here is the solution for question 4:

Part (a): Income Statement (Multi-step format) for the year ended December 31, 20X9

We will prepare the income statement using the trial balance and additional information.

Step 1: Calculate Cost of Goods Sold (COGS).
Since opening stock is not provided, we assume it is zero for the purpose of this calculation.

\begin{align*} Purchases &= Rs. 200,000 \\ Less: Closing Stock &= Rs. 50,000 \\ Cost of Goods Sold &= Rs. 150,