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The following trial balance was extracted from the books of K. Kalif a sole trader as at 31st Dec 2013. The following additional information is relevant: 1)...

The following trial balance was extracted from the books of K. Kalif a sole trader as at 31st Dec 2013.
fig86178308.png
The following additional information is relevant:
1) Stock as at 31st Dec 2013 amounted to Sh. 3,072,600
2) Amounts accrued as at 31st Dec 2013.
- Electricity Sh. 15000
- Bonus to employees Sh. 100,000
3) Insurance prepaid at 31st Dec 2013 was Sh. 35,000.
4) Included in the insurance payment is an amount of Sh. 15,500 for K. Kalif’s personal vehicle.
5) Provision for bad and doubtful debts is 5% of debtors.
6) Interest on loan had not yet been paid.
7) Depreciation is to be provided as follows;
- 20% on motor vehicle on reducing balance.
- 10% on building on straight line basis.

Required
a) Income Statement for the year ended 31st Dec 2013.
b) Balance sheet as at 31st Dec 2013.

Answers

Kavungya
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Kavungya answered the question on August 17, 2021 at 12:11

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