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1. The following is the trial balance of Kibe Traders as at 30th June 2022 Shs. Shs. Sales 12,150,000.00 Stock 1st July 2021 918,000.00 Deposit
1. The following is the trial balance of Kibe Traders as at 30th June 2022 Shs. Shs. Sales 12,150,000.00 Stock 1st July 2021 918,000.00 Deposit account 22,000.00 Cash at bank 540,500.00 Motor van at cost 350,000.00 Fixtures and Fittings at cost 90,000.00 Purchases 10,406,000.00 Trade debtors 818,000.00 Salaries and wages 57,800.00 Carriage outwards 116,000.00 Carriage inwards 95,800.00 Water and electricity 11,200.00 Freehold land and building at cost 1,410,000.00 Returns 22,400.00 19,000.00 Capital 491,700.00 20% loan from Unity-Finance bank 420,000.00 Loan interest 63,000.00 Discounts 90,000.00 304,000.00 Office expenses 45,000.00 Rent and rates 105,000.00 Commission received 20,000.00 Trade creditors 1,700,000.00 Drawings 95,000.00 Cash in hand 8,000.00 Provision for depreciation Motor van Fixtures and fittings 17,000.00 Bad debts 35,000.00 Provision for bad debts 1st July 2021 37,000.00 15,298,700.00 15,298,700.00 Additional Information 1. Closing stock was valued at shs. 800,000 2. The proprietor had taken goods worth shs. 14,000 for domestic use 3. Prepaid rent for the three months of July to September of the year 2022 amounted to Shs. 24,000. 4. A further amount of sh. 10,000 is to be written off as bad debts. 5. The provision for bad debts at the end of the year is to be adjusted to 5% of trade debtors. 6. Depreciation on fixed assets is to be provided as follows: Motor vehicles - 20% on straight line basis Fixtures and Fittings 10% on reducing balance basis 7. An electricity bill for the month of June 2022 amount to sh. 800 was received on 3 July 2022 8. Loan interest amounting to sh. 21,000 has not been paid. Required: a) Trading, profit and loss account for the year ended 30thJune 2022 (10mks)
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