Assignment 1 - Word困FileHomeInsertDesignLayoutReferencesMailingsReviewViewO Tell me what you want to do...Byro Chandrshekar & ShareX CutA A外 TO Find -Calibri11Aa-AaBbCcDd AaBbCcDd Aa E AaBbCcl AaBbCcD AaB AaBbCcD AaBbCcDd AaBbCcDd AaBbCcDd AaBbCcDce CopySac ReplacePasteV Format PainterBIU-abe X, x A - aly - A1 NormalI No Spac. Heading 1Heading 2Heading 3TitleSubtitleSubtle Em.. EmphasisIntense E...StrongA Select -ClipboardFontParagraphStylesEditingKevin is a sole trader involved in the manufacture of heating systems for the construction(i)Inventory was counted and valued at 3 January 2018 at Rs 246,800. On 2 Januaryindustry. You have been appointed as the financial accountant and the following trial balance2018, inventory was sold at a sales price of Rs 30,000. Kevin makes a margin on 20%was extracted from its books as at 31 December 2017:on its sales. The sales transaction is accounted for in the 2018 financial statements.(ii)Depreciation is to be charged as follows:Debit RsCredit Rs.Premises2% Straight Line on CostAccumulated Depreciation - Premises - 1 January 201768,200Equipment 10% Reducing BalanceAdministrative Expenses457,20025% Straight Line on CostVehiclesTrade Receivables / Trade Payables146,000180,700Depreciation is charged in full in the year of purchase and none in the year of sale.Drawings40,000(ii)Kevin brought in his private vehicles at a cost of Rs 40,000 which was not accountedPurchases / Revenue3,645,2004,929,850in the books.Allowance for irrecoverable Debts11,200(iv)Irrecoverable debts written off Rs 6200 in December 2017 and an allowance forLong-Term Loan - 5%125,000irrecoverable debts is maintained at 5%.Bank68,500Capital863,800(v)On 1 July 2017, a new long term loan of Rs 100,000 (5% interest per annum) wasPremises at Cost at 1 January 2017580,000received by the company.Inventory at 1 January 2017245,720The above trial balance has not been adjusted in respect of this new loan.Accumulated Depreciation - Vehicles - 1 January 2017104,600Provide for the interest due on the long term loans.Distribution Costs277,400(vi)Rs 10,000 was due for administrative expenses.Finance Costs6,000(vii) Rs 12,000 of distribution expenses were paid for the 4 months ended 28 FebruaryAccumulated Depreciation - Equipment - 1 January 201725,6702018.(viii) Carriage inwards paid by cheque Rs 1,000 as not recorded in the books.Equipment at Cost at 1 January 2017800,000Vehicles at Cost at 1 January 2017180,000(ix)Purchases of goods on credit Rs 12,000 was recorded twice in the accounts.6377 5206 377 520Required:Prepare an Income statement for the year ended 31 December 2017 and a Statement of FinancialBosition as at 31 December 2017.As an accountant you discovered the following information:Page 1 of 2396 wordsE English (United States)+70 %02:07O Type here to search75°F Light rain17/12/2021(6

What is meant by an Income Statement? After preparing the trail balance, the next step is to prepare…

Kevin is a sole trader involved in the manufacture of heating systems for the construction Inventory was counted and valued at 3 January 2018 at Ba 246.800. On 2 January industry. You have been appointed as the financial accountant and the following trial balance 2018. inventory was sold at a sales price of Ba 30.000. Kevin makes a margin on 20% was extracted from its books as at 31 December 2017: on its sales. The sales transaction is accounted for in the 2018 financial statements. O Depreciation is to be charged as follows: Debit Rs. Credir Rs Premises 2% Straight Line on Cost Accumulated Depreciation - Premises - 1 January 2017 68,200 Equipment 10% Reducing Balance Administrative Expenses 457,200 Vehicles 25% Straight Line on Cost Trade Receivables / Trade Payables 146,000 180,700 Depreciation is charged in full in the year of purchase and none in the year of sale. Drawings Purchases / Revenue 40,000 O Kevin brought in his private vehicles at a cost of Bg 40.000 which was not accounted 3,645,200 4,929,850 in the books. Allowance for irecoverable Debts 11,200 (w) Irrecoverable debts written off Rs 6200 in December 2017 and an allowance for Long-Term Loan - 5% 125,000 irrecoverable debts is maintained at 5%. Bank 68,500 Capital 863,800 M On 1 July 2017, a new long term loan of Bs 100.000 (5% interest per annum) was Premises at Cost at 1 January 2017 580,000 received by the company. Inventory at 1 Jamuary 2017 245,720 The above trial balance has not been adjusted in respect of this new loan. Accumulated Depreciation - Vehicles - 1 January 2017 104,600 Provide for the interest due on the long term loans. Distribution Costs 277,400 (w) Bs 10.000 was due for administrative expenses. Finance Costs 6,000 (vii) Ba 12.000 of distribution expenses were paid for the 4 months ended 28 February Accumulated Depreciation - Equipment - 1 January 2017 25,670 2018. (vii) Carriage imwards paid by shesue Bs 1.000 as not recorded in the books. (0 Purchases of goods on credit Ba 12.000 was recorded twice in the accounts. Equipment at Cost at 1 January 2017 s00,000 Vehicles at Cost at 1 January 2017 180,000 327 520 6377 520 Required: Prepare an Income statement for the year ended 31 December 2017 and a Statement of Financial BRAtien as at 31 December 2017.