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4. The following trial balance has been extracted from the ledger of Mr. Robert a sole trader as at 31 May 2018, TRIAL BALANCE DR
4. The following trial balance has been extracted from the ledger of Mr. Robert a sole trader as at 31 May 2018, TRIAL BALANCE DR (Shs.) CR (Shs.) Property at cost 900,000 Equipment at cost 575,000 Provision for depreciation on equipment 325,000 Provision for depreciation on property 125,000 Stock as at 1 June 2017 274,000 Purchases 2,596,000 Sales 4,050,0 00 Discount allowed 33.700 Discount received 44,200 Wages and salaries 523,600 Bad debt 17,200 Loan interest 15,600 Carriage outward 53.100 Other operating expenses 388.000 Trade debtors 462,000 Trade creditors 336,000 Provision for bad debts 2.800 Cash on hand 1,510 Bank overdraft 145,000 Drawings 289,300 13% loan 120000 Capital 981.010 6.129.010 6.129.010 Additional information: a) Stock as at 31 May 2018 was valued at ksh.259.000 b) Wages and salaries accrued by ksh. 1. 400 c) Depreciation for the year ended 31 May 2018 has yet to be provided as follows:- Property 10% using straight line method and Equipment 15% using straight line method d) Other operating expenses include certain expenses prepaid by ksh.5, 000. Other expenses included under this heading are accrued by ksh.2,000. e) The provision for bad debts is to be adjusted so that it is 0.5% of debtors as at 31 May 2018. f) Purchases include goods valued at ksh.10, 400 which were withdrawn by Mr. Robert for his own personal use. Required: i) Mr. Robert Income Statement for the year end 31 May 2018 (10marks) ii) Statement of financial position as at 31 May 2018 (5marks)
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