4. The following trial balance has been extracted from the ledger of Mr. KIOGORA 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 4,050,000

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f) Purchases include goods valued at ksh.10, 400 which were withdrawn by Mr.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. KIOGORA Income Statement for the year end 31 May 2018. (10marks)