Mr. Igiria 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 final accounts for the year ended December 31, 2018. 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 Bad debts written-off 1,300 Cash balance at end of year 20,000 Mr. Igiria used goods worth Kshs.2, 500 for private purposes, which is not recorded in the books. Charge depreciation on furniture 10% and machinery 20% p.a. on December 31, 2018, his debtors were worth Kshs.70, 000 and creditors Kshs.35, 000, stock in trade was valued on that date at Kshs.25, 000. Required a. Draw up the Statement of Affairs to calculate opening capital. b. Prepare summary of Cash-Receipts and Payments Account c. Trading and Profit and Loss Account (Income Statement) for the year ended December 31, 2018. d. Balance Sheet (Statement of financial position) as of December 31, 2018
Mr. Igiria 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. Igiria used goods worth Kshs.2, 500 for private purposes, which is not recorded in the books. Charge
Required
a. Draw up the Statement of Affairs to calculate opening capital.
b. Prepare summary of Cash-Receipts and Payments Account
c. Trading and
d. Balance Sheet (
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