Following is the trial balance extracted from the books of NICK CHARLES INVESTIGATIONS for the month ended March 31, 2020 :                                                                                                       Rs.                           Rs. Cash........................................................................................ 17,150 Fee Receivable........................................................................ 37,800 Unexpired Insurance................................................................. 1,600 Prepaid Rent............................................................................. 2,400 Office Supplies......................................................................... 1,050 Office Equipment................................................................... 17,100 Accumulated Depreciation : Office Equipment..................................................... 5,700 Accounts Payable................................................................................................... 3,900 Unearned Retainer Fees........................................................................................ 24,000 Nick Charles, Capital............................................................................................ 45,300 Nick Charles, Drawing............................................................. 3,200 Fees Earned.......................................................................................................... 33,320 Depreciation Expense.................................................................. 570 Rent Expense............................................................................ 3,000 Office Supplies Expense.............................................................. 450 Insurance Expense....................................................................... 800 Telephone Expense................................................................... 1,200 Travel Expense.......................................................................... 3,400 Salaries Expense..................................................................... 19,500   Other Data for Adjustments :   Provision for Depreciation on Office Equipment is to be recorded on the basis of 5 years estimated life (using straight-line method). Salaries earned by employees during the month but not yet recorded or paid amounted to Rs. 1,665. Investigative services rendered during the month but not yet collected or billed to clients amounted to Rs. 3,900. Services Income of Rs. 8,400 were earned during the month from services performed for clients who had paid in advance. On March 01, the business moved into a new office and paid the first three months’ rent in advance.   Required :   Using the information given above, prepare An INCOME STATEMENT for the month ended March 31, 2020 . Instead of straight line method, if firm follows diminishing balance method for recording depreciation, how would it effect the net income. Comment.

Following is the trial balance extracted from the books of NICK CHARLES INVESTIGATIONS for the month ended March 31, 2020 :

                                                                                                    Rs.                           Rs.

Cash........................................................................................ 17,150

Fee Receivable........................................................................ 37,800

Unexpired Insurance................................................................. 1,600

Prepaid Rent............................................................................. 2,400

Office Supplies......................................................................... 1,050

Office Equipment................................................................... 17,100

Accumulated Depreciation : Office Equipment..................................................... 5,700

Accounts Payable................................................................................................... 3,900

Unearned Retainer Fees........................................................................................ 24,000

Nick Charles, Capital............................................................................................ 45,300

Nick Charles, Drawing............................................................. 3,200

Fees Earned.......................................................................................................... 33,320

Depreciation Expense.................................................................. 570

Rent Expense............................................................................ 3,000

Office Supplies Expense.............................................................. 450

Insurance Expense....................................................................... 800

Telephone Expense................................................................... 1,200

Travel Expense.......................................................................... 3,400

Salaries Expense..................................................................... 19,500

Other Data for Adjustments :

• Provision for Depreciation on Office Equipment is to be recorded on the basis of 5 years estimated life (using straight-line method).
• Salaries earned by employees during the month but not yet recorded or paid amounted to Rs. 1,665.
• Investigative services rendered during the month but not yet collected or billed to clients amounted to Rs. 3,900.
• Services Income of Rs. 8,400 were earned during the month from services performed for clients who had paid in advance.
• On March 01, the business moved into a new office and paid the first three months’ rent in advance.

Required :

Using the information given above, prepare

• An INCOME STATEMENT for the month ended March 31, 2020 .
• Instead of straight line method, if firm follows diminishing balance method for recording depreciation, how would it effect the net income. Comment.