4. The following trial balance has been extracted from the ledger of Mr. Robert a sole trader as at 31 May 2018. TRIAL BALANCE DR (Shs.) CR (Shs.) Property at cost Equipment at cost Provision for depreciation on equipment Provision for depreciation on property 900,000 575,000 325,000 125,000 Stock as at 1 June 2017 274,000 Purchases 2,596,000 Sales 4,050,000 Discount allowed 33,700 Discount received Wages and salaries Bad debt Loan interest Carriage outward Other operating expenses Trade debtors 44,200 523,600 17,200 15,600 53,100 388,000 462,000 Trade creditors Provision for bad debts Cash on hand Bank overdraft 336,000 2,800 1,510 145,000 Drawings 13% loan Capital 289,300 120000 981.010 6.129.010 6.129,010 Additional information: a) Stock as at 31 May 2018 was valued at ksh 259, 000 b) Wages and salaries accrued by ksh.1, 400 c) Depreciation for the year ended 31 May 2018 has yet to be provided as follows;- Property 10% using straight line method ,and Equipment 15% using straight line method d) Other operating expenses include certain expenses prepaid by ksh.5, 000. Other expenses included under this heading are accrued by ksh.2, 000. e) The provision for bad debts is to be adjusted so that it is 0.5% of debtors as at 31 May 2018. f) Purchases include goods valued at ksh. 10, 400 which were withdrawn by Mr. Robert for his own personal use. Required: Mr. Robert Income Statement for the year end 31 May 2018 i) Statement of fituamcial povition as at 31 May 2018.
4. The following trial balance has been extracted from the ledger of Mr. Robert a sole trader as at 31 May 2018. TRIAL BALANCE DR (Shs.) CR (Shs.) Property at cost Equipment at cost Provision for depreciation on equipment Provision for depreciation on property 900,000 575,000 325,000 125,000 Stock as at 1 June 2017 274,000 Purchases 2,596,000 Sales 4,050,000 Discount allowed 33,700 Discount received Wages and salaries Bad debt Loan interest Carriage outward Other operating expenses Trade debtors 44,200 523,600 17,200 15,600 53,100 388,000 462,000 Trade creditors Provision for bad debts Cash on hand Bank overdraft 336,000 2,800 1,510 145,000 Drawings 13% loan Capital 289,300 120000 981.010 6.129.010 6.129,010 Additional information: a) Stock as at 31 May 2018 was valued at ksh 259, 000 b) Wages and salaries accrued by ksh.1, 400 c) Depreciation for the year ended 31 May 2018 has yet to be provided as follows;- Property 10% using straight line method ,and Equipment 15% using straight line method d) Other operating expenses include certain expenses prepaid by ksh.5, 000. Other expenses included under this heading are accrued by ksh.2, 000. e) The provision for bad debts is to be adjusted so that it is 0.5% of debtors as at 31 May 2018. f) Purchases include goods valued at ksh. 10, 400 which were withdrawn by Mr. Robert for his own personal use. Required: Mr. Robert Income Statement for the year end 31 May 2018 i) Statement of fituamcial povition as at 31 May 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:4. The following trial balance has been extracted from the ledger of Mr. Robert a sole trader as at 31
May 2018.
TRIAL BALANCE
DR (Shs.)
CR (Shs.)
Property at cost
Equipment at cost
Provision for depreciation on equipment
Provision for depreciation on property
900,000
575,000
325,000
125,000
Stock as at 1 June 2017
274,000
Purchases
2,596,000
Sales
4,050,000
Discount allowed
33,700
Discount received
Wages and salaries
Bad debt
Loan interest
Carriage outward
Other operating expenses
Trade debtors
44,200
523,600
17,200
15,600
53,100
388,000
462,000
Trade creditors
Provision for bad debts
Cash on hand
Bank overdraft
336,000
2,800
1,510
145,000
Drawings
13% loan
Capital
289,300
120000
981.010
6.129.010
6.129,010
Additional information:
a) Stock as at 31 May 2018 was valued at ksh 259, 000
b) Wages and salaries accrued by ksh.1, 400
c) Depreciation for the year ended 31 May 2018 has yet to be provided as follows;- Property 10%
using straight line method ,and Equipment 15% using straight line method
d) Other operating expenses include certain expenses prepaid by ksh.5, 000. Other expenses included
under this heading are accrued by ksh.2, 000.
e) The provision for bad debts is to be adjusted so that it is 0.5% of debtors as at 31 May 2018.
f) Purchases include goods valued at ksh. 10, 400 which were withdrawn by Mr. Robert for his own
personal use.
Required:
Mr. Robert Income Statement for the year end 31 May 2018
i) Statement of fituamcial povition as at 31 May 2018.
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