Additional informationInventory as at 31/12/2019 amounted to Ksh. 2,960,000Provision for bad and doubtful debts is set at 6 % of current accounts receivable.Motor vehicle expenses prepaid amounted to Ksh. 135,000Rent accrued amounted to Ksh. 140,000 and while salaries and wages unpaid were Ksh. 85,000. 5.Depreciation is provided on Plant and Machinery; and Furniture at 10 % p.a and 12% p.a respectively on cost. Required to prepare(a)Income statement for year ended 31/12/2019 (b)Statement of financial position as at 31/12/2019 Mr Thomas is a retailer operating in Nairobi His trial balance as at 31/12/19 is as follows:DrCrKah. *000Kah. "000Plant and Machinery(at cost)59,000Furniture (at cost)20,400Purchases73,000Sales108,900Inventory 1/1/193,200Discount2,1501,850Carriage inwards520Carriage outwards2,400Provision for bad and doubtful debts1140Accounts receivable27,300Accounts payable18,600Cash at Rank2,600Rent1,240Electricity and Water1,980TelephoneMotor vehicles expenses1,5402,350Bank Loan4,900Bad debts3,760Retums4,5003,470Salaries and WagasDrawing s1,8003,150Capital72,030210.890210.890

The end product of the book keeping is the financial statements of the company. The financial…

Answered: Additional information Inventory as at…

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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Additional information

Inventory as at 31/12/2019 amounted to Ksh. 2,960,000
Provision for bad and doubtful debts is set at 6 % of current accounts receivable.
Motor vehicle expenses prepaid amounted to Ksh. 135,000
Rent accrued amounted to Ksh. 140,000 and while salaries and wages unpaid were Ksh. 85,000.

5.Depreciation is provided on Plant and Machinery; and Furniture at 10 % p.a and 12% p.a respectively on cost.

Required to prepare

(a)Income statement for year ended 31/12/2019

(b)Statement of financial position as at 31/12/2019

Mr Thomas is a retailer operating in Nairobi His trial balance as at 31/12/19 is as follows:
Dr
Cr
Kah. *000
Kah. "000
Plant and Machinery(at cost)
59,000
Furniture (at cost)
20,400
Purchases
73,000
Sales
108,900
Inventory 1/1/19
3,200
Discount
2,150
1,850
Carriage inwards
520
Carriage outwards
2,400
Provision for bad and doubtful debts
1140
Accounts receivable
27,300
Accounts payable
18,600
Cash at Rank
2,600
Rent
1,240
Electricity and Water
1,980
Telephone
Motor vehicles expenses
1,540
2,350
Bank Loan
4,900
Bad debts
3,760
Retums
4,500
3,470
Salaries and Wagas
Drawing s
1,800
3,150
Capital
72,030
210.890
210.890

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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