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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Additional information

  1. Inventory as at 31/12/2019 amounted to Ksh. 2,960,000
  2. Provision for bad and doubtful debts is set at 6  % of current accounts receivable.
  3. Motor vehicle expenses prepaid amounted to Ksh. 135,000
  4. 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
Transcribed Image Text: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
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