The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31 May 20X3- the end of his financial year. Kibusa JoJo TRIAL BALANCE AS AT 31 MAY 20X3 Property, at Cost Equipment, at Cost Provisions for depreciation (as at 1 June 20X2) - on Property -on equipment Purchases Sales Inventory as at 1 June 20X2 Discount allowed Discount received Returns Out Wages and Salaries Irrecoverable Debts Loan Interest Other Operating expenses Trade Payables Trade Receivables Cash in Hand Bank Drawings Allowance for receivables 17% long term loan Capital Dr K'000 120,000 80,000 250,000 50,000 18,000 58,800 4,600 5,100 17,700 38,000 300 1,300 24,000 667,800 The following additional information as 31st May 20X3 is available. (a) Inventory as at the close of business has been valued at K42, 000,000. Cr K'000 20,000 38,000 402200 4,800 15,000 36,000 500 30,000 121,300 667,800 (b) Wages and Salaries need to be accrued by k800, 000. (c) Other Operating expenses are prepaid by K300, 000. (d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables. (e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows. Property: 1.5% per annum using straight line method and Equipment: 25% per annum using the reducing balance method. Required Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his statement of financial position as at that date.
The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31 May 20X3- the end of his financial year. Kibusa JoJo TRIAL BALANCE AS AT 31 MAY 20X3 Property, at Cost Equipment, at Cost Provisions for depreciation (as at 1 June 20X2) - on Property -on equipment Purchases Sales Inventory as at 1 June 20X2 Discount allowed Discount received Returns Out Wages and Salaries Irrecoverable Debts Loan Interest Other Operating expenses Trade Payables Trade Receivables Cash in Hand Bank Drawings Allowance for receivables 17% long term loan Capital Dr K'000 120,000 80,000 250,000 50,000 18,000 58,800 4,600 5,100 17,700 38,000 300 1,300 24,000 667,800 The following additional information as 31st May 20X3 is available. (a) Inventory as at the close of business has been valued at K42, 000,000. Cr K'000 20,000 38,000 402200 4,800 15,000 36,000 500 30,000 121,300 667,800 (b) Wages and Salaries need to be accrued by k800, 000. (c) Other Operating expenses are prepaid by K300, 000. (d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables. (e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows. Property: 1.5% per annum using straight line method and Equipment: 25% per annum using the reducing balance method. Required Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his statement of financial position as at that date.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31
May 20X3- the end of his financial year.
Kibusa JoJo
TRIAL BALANCE AS AT 31 MAY 20X3
Property, at Cost
Equipment, at Cost
Provisions for depreciation (as at 1 June 20X2)
- on Property
-on equipment
Purchases
Sales
Inventory as at 1 June 20X2
Discount allowed
Discount received
Returns Out
Wages and Salaries
Irrecoverable Debts
Loan Interest
Other Operating expenses
Trade Payables
Trade Receivables
Cash in Hand
Bank
Drawings
Allowance for receivables
17% long term loan
Capital
Dr
K'000
120,000
80,000
250,000
50,000
18,000
58,800
4,600
5,100
17,700
38,000
300
1,300
24,000
667,800
The following additional information as 31st May 20X3 is available.
(a) Inventory as at the close of business has been valued at K42, 000,000.
(b) Wages and Salaries need to be accrued by k800, 000.
(c) Other Operating expenses are prepaid by K300, 000.
Cr
K'000
20,000
38,000
402200
4,800
15,000
36,000
500
30,000
121,300
667,800
(d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables.
(e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows.
Property: 1.5% per annum using
line method and
Equipment: 25% per annum using the reducing balance method.
Required
Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his
statement of financial position as at that date.
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