Reference no: EM132616277
Question - The following balances were extracted from the general ledger of Bob, a sole trader, as at 31 March 2019:
Sh.
Bank overdraft 1,164,800
Cash in hand 49,140
Drawings 1,456,000
Furniture and fittings 1,176,000
Office equipment 1,848,000
Provision for depreciation as at 1 April 2018:
Furniture and fittings 235,200
Office equipment 462,000
Bad debts 36,400
Advertising 520,520
15% loan 1,400,000
Purchases 14,133,280
Sales 27,385,400
Interest expense 157,500
Returns inwards 218,400
Office expenses 760,760
Delivery expenses 1,164,800
Wages and salaries 8,010,520
Inventories as at 1 April 2018 3,657,080
Receivables 1,419,600
Payables 1,160,600
Capital ?
Additional information:
1. Inventories as at 31 March 2019 was valued at Sh.4,360,720.
2. Accrued wages as at 31 March 2019 amounted to Sh.251,160.
3. Receivables include an amount of Sh.39,200 which was not expected to be recovered.
4. Interest on loan is paid on a quarterly basis. Interest in respect of the quarter ended 31 March 2019 is outstanding.
5. Bob withdrew goods for his personal use amounting to Sh.252,000.
6. Depreciation is to be provided on the reducing balance basis as follows:
- Furniture and fittings - 20% per annum
- Office equipment - 25% per annum
7. Included in wages and salaries is Sh.75,600 paid to employees for repairing the roof of Bob's private residence.
Required -
(a) Make an Income statement for the year ended 31 March 2019.
(b) Prepare a Statement of financial position as at 31 March 2019.
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