Prepare the Income Statement.

Here are the financial statements prepared from the provided trial balance for the year ending June 30, 2009. Note: The provided trial balance does not balance. The total debits are Rs. 133,900 and total credits are Rs. 138,000, resulting in a difference of Rs. 4,100. This discrepancy will carry forward to the balance sheet. Step 1: Prepare the Income Statement. The Income Statement reports the revenues earned and expenses incurred during the period to determine net income. l r Income Statement & Rs. \\ For the Year Ended June 30, 2009 & \\ Revenue from fees & 42,500 \\ Less: Expenses & \\ Advertising expenses & 5,500 \\ Salaries expenses & 10,300 \\ Electric and water expenses & 6,400 \\ Total Expenses & (22,200) \\ Net Income & 20,300 \\ Step 2: Prepare the Statement of Owner's Equity. The Statement of Owner's Equity shows the changes in the owner's capital during the period. l r Statement of Owner's Equity & Rs. \\ For the Year Ended June 30, 2009 & \\ Capital, July 1, 2008 & 80,000 \\ Add: Net Income & 20,300 \\ Less: Drawings & (5,000) \\ Capital, June 30, 2009 & 95,300 \\ Step 3: Prepare the Balance Sheet. The Balance Sheet presents the assets, liabilities, and owner's equity at a specific point in time. l r Balance Sheet & Rs. \\ As of June 30, 2009 & \\ Assets & \\ Cash & 4,500 \\ Unexpired insurance & 2,200 \\