Question Two The following trial balance was extracted from the books of June Akinyi as at 31st December, 2015. Sh. Cash in hand Office equipment at cost Purchases and sales Wages and salaries Rent received Postage and stationery Discounts allowed and received Insurance Cash at bank Trade debtors and creditors Returns inwards and outwards Allowances for doubtful debts Inventory on 1 January 2015 Buildings at cost 800,000 Provision for depreciation on buildings Carriage inwards Carriage outwards 15% loan from Woma Bank Capital Bad debts Drawings 10 V. VI. VII. Sh. 10,000 40,000 500,000 60,000 72,000 12,000 45,000 200,000 96,000 6,000 70,000 16,000 20,000 42,000 48,000 2,037,000 Additional information as on 31 December 2015. 1. Closing inventory was valued at sh. 76,000 Rent received in advance was sh. 45,000 II. III. Insurance prepaid was sh. 5,000 IV. Salaries sh. 10,000 was outstanding 1,206,000 105,000 Required: Income statement for the year ended 31 December, 2015 Statement of financial position as att 31 December, 2015 16,000 65,000 10,000 4,000 80,000 100,000 451, 000 2,037,000 June Akinyi took goods worth sh. 20,000 for personal use Maintain allowances for doubtful debts at 5% of trade debtors Depreciation is to be provided on cost as follows: Office equipment at 20% p.a Buildings at 15% p.a
Question Two The following trial balance was extracted from the books of June Akinyi as at 31st December, 2015. Sh. Cash in hand Office equipment at cost Purchases and sales Wages and salaries Rent received Postage and stationery Discounts allowed and received Insurance Cash at bank Trade debtors and creditors Returns inwards and outwards Allowances for doubtful debts Inventory on 1 January 2015 Buildings at cost 800,000 Provision for depreciation on buildings Carriage inwards Carriage outwards 15% loan from Woma Bank Capital Bad debts Drawings 10 V. VI. VII. Sh. 10,000 40,000 500,000 60,000 72,000 12,000 45,000 200,000 96,000 6,000 70,000 16,000 20,000 42,000 48,000 2,037,000 Additional information as on 31 December 2015. 1. Closing inventory was valued at sh. 76,000 Rent received in advance was sh. 45,000 II. III. Insurance prepaid was sh. 5,000 IV. Salaries sh. 10,000 was outstanding 1,206,000 105,000 Required: Income statement for the year ended 31 December, 2015 Statement of financial position as att 31 December, 2015 16,000 65,000 10,000 4,000 80,000 100,000 451, 000 2,037,000 June Akinyi took goods worth sh. 20,000 for personal use Maintain allowances for doubtful debts at 5% of trade debtors Depreciation is to be provided on cost as follows: Office equipment at 20% p.a Buildings at 15% p.a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question Two
The following trial balance was extracted from the books of June Akinyi as at 31st
December, 2015.
Sh.
Cash in hand
Office equipment at cost
Purchases and sales
Wages and salaries
Rent received
Postage and stationery
Discounts allowed and received
Insurance
Cash at bank
Trade debtors and creditors
Returns inwards and outwards
Allowances for doubtful debts
Inventory on 1 January 2015
Buildings at cost
800,000
Provision for depreciation on buildings
Carriage inwards
Carriage outwards
15% loan from Woma Bank
Capital
Bad debts
Drawings
10
II.
III.
IV.
V.
VI.
VII.
Sh.
10,000
40,000
500,000
60,000
72,000
12,000
45,000
200,000
96,000
6,000
70,000
16,000
20,000
42,000
48,000
2,037,000
Additional information as on 31 December 2015.
1. Closing inventory was valued at sh. 76,000
1,206,000
105,000
Required:
Income statement for the year ended 31 December, 2015
Statement of financial position as att 31 December, 2015
16,000
65,000
10,000
4,000
80,000
100,000
451, 000
2,037,000
Rent received in advance was sh. 45,000
Insurance prepaid was sh. 5,000
Salaries sh. 10,000 was outstanding
June Akinyi took goods worth sh. 20,000 for personal use
Maintain allowances for doubtful debts at 5% of trade debtors
Depreciation is to be provided on cost as follows:
Office equipment at 20% p.a
Buildings at 15% p.a
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