Study the following information which was extracted from Mr. Chacha’s farm record on 31- 12-2013 and answer the questions below. Loans payable to bank Kshs. 300,000 Five...

      

Study the following information which was extracted from Mr. Chacha’s farm record on 31- 12-2013 and answer the questions below.
Loans payable to bank Kshs. 300,000
Five milking cows Ksh 250,000
400 layers Kshs. 80,000
20 goat Kshs. 30,000
Debts payable to co-operative Ksh 20,000
Buildings and structures kshs. 600,000
Bonus payable to workers Ksh 19,000
Cattle feed in store Kshs. 10,000
Animal drugs in store Kshs 4,000
Debts receivable Kshs. 18,000
Breakages to repair Kshs. 30,000
Cash at hand Kshs. 20,000
Cash in bank Kshs. 30,000
Spray equipment Kshs. 12,000

(i) Prepare a balance sheet for Chacha’s farm using the information above.
(ii) Was the business solvent or insolvent?

  

Answers


Kavungya
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ii) The business was solvent
Kavungya answered the question on October 4, 2019 at 09:48


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