hs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduc
Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare
Accounts from Incomplete Records
Amount Kshs.
Receipt from debtors. 57,500
Cash sales 45,000
Cash purchases 25,000
Wages paid 5,000
Salaries to staff 17,500
Trade expanses 6,500
Electricity bill of factory 7,500
Drawings of Karue 3,000
Cash paid to creditors 42,000
Discount allowed 1,200
Discount received 3,000
Cash balance at end of year 20,000
Mr.Karue used goods worth Kshs.2, 500 for private purposes, which is not recorded in the books. Charge
Required
- Draw up theStatement of Affairs to calculate opening capital.
- Prepare summary of Cash-Receipts and Payments Account
- Trading and
Profit and Loss Account (Income Statement) for the year ended December 31, 2018. - Balance Sheet (
Statement of financial position ) as of December 31, 2018
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