The following trial balance was extracted from the books of Brian Kamau, a sole trader at 31 December 200s. Outstanding electricity bill as at 31 December 2008 (this 3. included in general expenses) amounted to Shs.3, 580. Debtors indlude an irrecoverable amount of Shs.5, 600. A five per cent provision for doubtful debts is to be made on the recoverable debtors. Depreciation is to be provided on the motor vehicle and plant and machinery at the rates of 20% and 25% respectively on the reducing balance method. No depreciation is to be provided on land and building. Shs Shs 4. Capital, 1 January 2008 3,165,620 Purchases 923,600 5. Sales 1,968,160 Purchase retums 5,600 Sales returns 16,160 Discount allowed 18,200 6. Included in the wages and salaries is an amount of shs.62, 000 paid to the domestic workers of Mr. Brian Kamau. 7. Outstanding wages and salaries as at 31 December 2008 amounted to Shs. 24,800. Discount received 14,080 Wages and salaries 622,000 Rates 49,000 Insurance 35,600 General expenses 81,200 Trade debtors 368,000 Required. Trade creditors 322,400 Income statement for the year ended 31 December a) 2008 Bank overdraft 80,400 Stock in trade, 1 January 2008 122,000 1,700,000 1,230,000 Statement of financial position as at 31 December b) 2008. Land and buildings at cost Plant and machinery at cost Motor vehicle at cost 562,000 Drawings 208,200 Cash in hand 40,200 Provision for depreciation: motor vehicle 112,400 Plant & machinery 307,500 5.976,160 5.976.160 Notes: 1. Stock in trade on 31 December 2008 amounted to Shs. 148,400. Activat 2. Rates paid in advance as at 31 December 2008 amounted to Shs, 7000. Go to Set
The following trial balance was extracted from the books of Brian Kamau, a sole trader at 31 December 200s. Outstanding electricity bill as at 31 December 2008 (this 3. included in general expenses) amounted to Shs.3, 580. Debtors indlude an irrecoverable amount of Shs.5, 600. A five per cent provision for doubtful debts is to be made on the recoverable debtors. Depreciation is to be provided on the motor vehicle and plant and machinery at the rates of 20% and 25% respectively on the reducing balance method. No depreciation is to be provided on land and building. Shs Shs 4. Capital, 1 January 2008 3,165,620 Purchases 923,600 5. Sales 1,968,160 Purchase retums 5,600 Sales returns 16,160 Discount allowed 18,200 6. Included in the wages and salaries is an amount of shs.62, 000 paid to the domestic workers of Mr. Brian Kamau. 7. Outstanding wages and salaries as at 31 December 2008 amounted to Shs. 24,800. Discount received 14,080 Wages and salaries 622,000 Rates 49,000 Insurance 35,600 General expenses 81,200 Trade debtors 368,000 Required. Trade creditors 322,400 Income statement for the year ended 31 December a) 2008 Bank overdraft 80,400 Stock in trade, 1 January 2008 122,000 1,700,000 1,230,000 Statement of financial position as at 31 December b) 2008. Land and buildings at cost Plant and machinery at cost Motor vehicle at cost 562,000 Drawings 208,200 Cash in hand 40,200 Provision for depreciation: motor vehicle 112,400 Plant & machinery 307,500 5.976,160 5.976.160 Notes: 1. Stock in trade on 31 December 2008 amounted to Shs. 148,400. Activat 2. Rates paid in advance as at 31 December 2008 amounted to Shs, 7000. Go to Set
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The following trial balance was extracted from the books of Brian Kamau, a
sole trader at 31 December 200s.
Outstanding electricity bill as at 31 December 2008 (this
3.
included in general expenses) amounted to Shs.3, 580.
Debtors indlude an irrecoverable amount of Shs.5, 600.
A five per cent provision for doubtful debts is to be made
on the recoverable debtors. Depreciation is to be provided on the
motor vehicle and plant and machinery at the rates of 20% and
25% respectively on the reducing balance method. No
depreciation is to be provided on land and building.
Shs
Shs
4.
Capital, 1 January 2008
3,165,620
Purchases
923,600
5.
Sales
1,968,160
Purchase retums
5,600
Sales returns
16,160
Discount allowed
18,200
6. Included in the wages and salaries is an amount of shs.62,
000 paid to the domestic workers of Mr. Brian Kamau.
7. Outstanding wages and salaries as at 31 December 2008
amounted to Shs. 24,800.
Discount received
14,080
Wages and salaries
622,000
Rates
49,000
Insurance
35,600
General expenses
81,200
Trade debtors
368,000
Required.
Trade creditors
322,400
Income statement for the year ended 31 December
a)
2008
Bank overdraft
80,400
Stock in trade, 1 January 2008
122,000
1,700,000
1,230,000
Statement of financial position as at 31 December
b)
2008.
Land and buildings at cost
Plant and machinery at cost
Motor vehicle at cost
562,000
Drawings
208,200
Cash in hand
40,200
Provision for depreciation: motor vehicle
112,400
Plant & machinery
307,500
5.976,160
5.976.160
Notes:
1. Stock in trade on 31 December 2008 amounted to Shs. 148,400.
Activat
2.
Rates paid in advance as at 31 December 2008 amounted to Shs, 7000.
Go to Set
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