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(a) Stock 29 February 2016 was Kshs. 2,400. (b) Wages and salaries accrued at 28 February 2016 was Kshs. 340. Add (c) Rent prepaid at 29 February 2016 was Kshs. 230. Add (d) Van running costs owing at 29 February 2016 Kshs. 72. Add (e) Increase the provision for doubtful debts by Kshs. 91. 405+91 (f) Provide for depreciation as follows: Office furniture Kshs. 380; Delivery van Kshs. 1,250. Required to Prepare: Trading and profit and loss account (Income Statement) for the year ended 29 February 2016. b. Balance Sheet (Statement of Financial position) as at that date.

(a) Stock 29 February 2016 was Kshs. 2,400. (b) Wages and salaries accrued at 28 February 2016 was Kshs. 340. Add (c) Rent prepaid at 29 February 2016 was Kshs. 230. Add (d) Van running costs owing at 29 February 2016 Kshs. 72. Add (e) Increase the provision for doubtful debts by Kshs. 91. 405+91 (f) Provide for depreciation as follows: Office furniture Kshs. 380; Delivery van Kshs. 1,250. Required to Prepare: Trading and profit and loss account (Income Statement) for the year ended 29 February 2016. b. Balance Sheet (Statement of Financial position) as at that date.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DONE In each case, identify and then explain the main accounting concepts being highlighted and indicate how each should be treated in the final accounts. 7 Question Four The following trial balance was extracted from the books of Red Colours at the close of business on 29 February 2016. Purchases and sales Cash at bank Cash in hand Capital account 1 March 2015 Drawings Office furniture Rent Purchase >92,800 157, 165 Dr Kshs. 92,800 4,100 324 17,100 2,900 3,400 Cr Kshs. 157,165 11,400
Transcribed Image Text:DONE In each case, identify and then explain the main accounting concepts being highlighted and indicate how each should be treated in the final accounts. 7 Question Four The following trial balance was extracted from the books of Red Colours at the close of business on 29 February 2016. Purchases and sales Cash at bank Cash in hand Capital account 1 March 2015 Drawings Office furniture Rent Purchase >92,800 157, 165 Dr Kshs. 92,800 4,100 324 17,100 2,900 3,400 Cr Kshs. 157,165 11,400
Wages and salaries Discounts Debtors and creditors Stock 1 March 2015 Provision for doubtful debts 1 March 2015 Delivery Van Van running costs Bad debts written off 31,400 820 12,316 4,120 3,750 615 b. 730 174,375 174,375 160 5,245 Additional information. (a) Stock 29 February 2016 was Kshs. 2,400. (b) Wages and salaries accrued at 28 February 2016 was Kshs. 340. Add (c) Rent prepaid at 29 February 2016 was Kshs. 230. Add (d) Van running costs owing at 29 February 2016 Kshs. 72. Add (e) Increase the provision for doubtful debts by Kshs. 91. 405 +91 (f) Provide for depreciation as follows: Office furniture Kshs. 380; Delivery van Kshs. 1,250. Required to Prepare: Balance Sheet (Statement of Financial position) as at that date. 405 a. Trading and profit and loss account (Income Statement) for the year ended 29 February 2016.
Transcribed Image Text:Wages and salaries Discounts Debtors and creditors Stock 1 March 2015 Provision for doubtful debts 1 March 2015 Delivery Van Van running costs Bad debts written off 31,400 820 12,316 4,120 3,750 615 b. 730 174,375 174,375 160 5,245 Additional information. (a) Stock 29 February 2016 was Kshs. 2,400. (b) Wages and salaries accrued at 28 February 2016 was Kshs. 340. Add (c) Rent prepaid at 29 February 2016 was Kshs. 230. Add (d) Van running costs owing at 29 February 2016 Kshs. 72. Add (e) Increase the provision for doubtful debts by Kshs. 91. 405 +91 (f) Provide for depreciation as follows: Office furniture Kshs. 380; Delivery van Kshs. 1,250. Required to Prepare: Balance Sheet (Statement of Financial position) as at that date. 405 a. Trading and profit and loss account (Income Statement) for the year ended 29 February 2016.
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