The following trial balance was extracted from the books of Chakula Kitamu at the close of business on 29 February 2016. Dr Cr Ksh. Ksh. Purchases and sales 92,800 157,165 Cash at bank 4,100 Cash in hand 324 Capital account 1 March 2015 11,400 Drawings 17,100 Office furniture 2,900 Rent 3,400 Wages and salaries 31,400 Discounts 820 160 Debtors and creditors 12,316 5,245 Stock 1 March 2015 4,120 Provision for doubtful debts 1 March 2015 405 Delivery van 3,750 Van running costs 615 Bad debts written off 730 174,375 174,375 Additional information. (a) Stock 29 February 2016 was Ksh. 2,400. (b) Wages and salaries accrued at 28 February 2016 was Ksh. 340. (c) Rent prepaid at 29 February 2016 was Ksh. 230. (d) Van running costs owing at 29 February 2016 Ksh. 72. (e) Increase the provision for doubtful debts by Ksh. 91. (f ) Provide for depreciation as follows: Office furniture Ksh. 380; Delivery van Ksh. 1,250. Required Prepare i.Trading and profit and loss account (income Statement) for the year ended 29 February 2016.
The following
Dr Cr
Ksh. Ksh.
Purchases and sales 92,800 157,165
Cash at bank 4,100
Cash in hand 324
Capital account 1 March 2015 11,400
Drawings 17,100
Office furniture 2,900
Rent 3,400
Wages and salaries 31,400
Discounts 820 160
Debtors and creditors 12,316 5,245
Stock 1 March 2015 4,120
Provision for doubtful debts 1 March 2015 405
Delivery van 3,750
Van running costs 615
174,375 174,375
Additional information.
(a) Stock 29 February 2016 was Ksh. 2,400.
(b) Wages and salaries accrued at 28 February 2016 was Ksh. 340.
(c) Rent prepaid at 29 February 2016 was Ksh. 230.
(d) Van running costs owing at 29 February 2016 Ksh. 72.
(e) Increase the provision for doubtful debts by Ksh. 91.
(f ) Provide for
Required Prepare
i.Trading and
ii. Balance sheet (
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