Additional information Inventory as at 31/12/2019 amounted to Ksh. 2,960,000 Provision for bad and doubtful debts is set at 6 % of current accounts receivable. Motor vehicle expenses prepaid amounted...

Additional information

1. Inventory as at 31/12/2019 amounted to Ksh. 2,960,000


2. Provision for bad and doubtful debts is set at 6  % of current accounts receivable.


3. Motor vehicle expenses prepaid amounted to Ksh. 135,000


4. Rent accrued amounted to Ksh. 140,000 and while salaries and wages unpaid were Ksh.  85,000.

     5.Depreciation is provided on Plant and Machinery; and Furniture at 10           % p.a and 12% p.a respectively on cost.

Required to prepare

(a)Income statement for year ended 31/12/2019

(b)Statement of financial position as at 31/12/2019

Extracted text: Mr Thomas is a retailer operating in Nairobi His trial balance as at 31/12/19 is as follows: Dr Cr Kah. *000 Kah. "000 Plant and Machinery(at cost) 59,000 Furniture (at cost) 20,400 Purchases 73,000 Sales 108,900 Inventory 1/1/19 3,200 Discount 2,150 1,850 Carriage inwards 520 Carriage outwards 2,400 Provision for bad and doubtful debts 1140 Accounts receivable 27,300 Accounts payable 18,600 Cash at Rank 2,600 Rent 1,240 Electricity and Water 1,980 Telephone Motor vehicles expenses 1,540 2,350 Bank Loan 4,900 Bad debts 3,760 Retums 4,500 3,470 Salaries and Wagas Drawing s 1,800 3,150 Capital 72,030 210.890 210.890