Reference no: EM132612266
Questions -
QUESTION ONE - Enter the asset, capital and liability accounts in the books of a General Antics shop and answer the following questions:
March 1 Started in business with Sh800,000 in the bank
March 2 bought goods on credit from the following person: l frank Sh5,500; G Byers Sh 29,000; P Lee Sh6,100
March 5 cash sales Sh51,000 March 6 Paid wages in cash Sh11,000
March 7 Sold goods on credit to :j snow Sh29,500; K park Sh 3,600 ;B Tyler Sh64,000
March 9 Bought goods on cash Sh120,000
March 10 Bought goods on credit from: G byres Sh 41,000 P.lee Sh124,000
March 12 Bought goods on cash Sh11,000
March 13 Sold goods on credit from K park Sh6000:B Tyler Sh20,500.
March15 Bought shop fixtures on credit from shop ltd Sh74,000
March 17 Paid G Byers by cheque Sh 70,000
March 18 We returned goods to p Lee Sh8,300
March 21 Paid Shop Ltd a cheque for Sh74,000
March 24 B Tyler paid us his account by cheque Sh84,500
March 27 we returned goods to L Frank Sh1,800
March 30 G Prince Lent us Sh100,000 by cash
March 31 Bought a van paying by cheque Sh625,000
Required -
i) Record the transactions in the books of General Antics shop for the of March 2018.
ii) Prepare trial balance for the month of March 2018 in the books of General Antics shop.
QUESTION TWO - Ngamia One co. Ltd has been trading for some years as a distributor. The following list of balances has been extracted from his ledger as at 30 June 2018.
Details Amount (Ksh) Amount(Ksh)
Capital 838,870
Sales 2,598,700
Creditors 198,400
Return outwards 134,070
Provision for doubtful debts 5,120
Discount Allowed 23,060
Discount Received 17,500
Purchases 1,356,800
Return inwards 56,240
Carriage outwards 45,620
Drawings 184,400
Carriage inwards 118,300
Rent & Rates 259,730
Heat & Light 110,100
Stationary 24,100
Advertising 59,800
Salaries & Wages 385,210
Bad debts 20,080
Cash in hand 5,340
Cash at bank 44,400
Stock as at 30th June 2017 156,540
Debtors 245,000
Fixtures and fittings (Cost) 1,207,400
Provision for depreciation 750,940
Totals 4,302,120 4,302,120
The following additional information as at 30june 2018 is available
a. Stock at the close of business was valued at Sh 177,500
b. Insurances have been prepaid by Sh 11,200
c. Heating and lighting is accrued by Sh13,600
d. Rates have been prepaid by Sh 54,350
e. The provision for doubtful debt is to be adjusted so that is 5% of trade debtor
f. Depreciation policy on fixtures and fittings is to be provided at 10 % pa. On cost.
Required -
a) Prepare Sweet Orchards co. Ltd's income statement for the year ended 30 June 2018.
b) Prepare Sweet Orchards co. Ltd's statement of financial position as at 30 June 2018.