Extracted text: Notes: b. The following trial balance was extracted from the books of Brian Kamau, a sole trader at 31 December 2008. 1. Stock in trade on 31 December 2008 amounted to Shs. 148,400. Shs Shs 2. Rates paid in advance as at 31 December 2008 amounted to Shs. 7000. Capital, 1 January 2008 3.165,620 3. Outstanding electricity bill as at 31 December 2008 (this included in general expenses) amounted to Shs.3,580. Purchases 923,600 Sales 1.968,160 4. Debtors include an irrecoverable amount of Shs.5, 600. Purchase retums 5.600 5. A five per cent provision for doubtful debts is to be made on the recoverable debtors. Depreciation is to be provided on the motor vehicle and plant and machimery at the rates of 20% and 25% respectively on the reducing balance method. No depreciation is to be provided on land and building. Sales retums 16.160 Discount allowed 18,200 Discount received 14,080 6. Included in the wages and salaries is an amount of shs.62, 000 paid to the domestic workers of Mr. Brian Kamau. Wages and salaries 622,000 Rates 49.000 7. Outstanding wages and salaries as at 31 December 2008 amounted to Shs. 24,800. Insurance 35,600 General expenses 81.200 Trade debtors 368,000 Trade creditors 322,400 Required. Bank overdraft 80.400 a) Income statement for the year ended 31 December 2008 Stock in trade, 1 January 2008 122,000 b) Statement of fimancial position as at 31 December 2008. Land and buildings at cost 1.700,000 Plant and machinerv at cost 1.230,000 Motor vehicle at cost 562.000 Drawings 208.200 Cash in hand 40,200 Provision for depreciation: motor vehide 112,400 Plant & machinery 307,500 Activate 5.976,160 5.976,160 Go to Setti . ....