6. FRIDAY: 20 November 2015 Time Allowed 3 hours. Anwar ALL questions Marks allocated to each question are shown at the end of the question. Show ALL your workings QUESTION ONE The following balances were extracted from the books of Mike Most as at 30 June 2015: Capital Land and buildings Moror vehicles (ut cost) Omes equipment (at cost) Crows profit Rates and insurance Bad debts written off Crilities Bad debts recovered Rest receivable Provision for doubtful debts Personal expenses Cash in hand Bank balance Discounts received Discounts allowed Accumulated depreciation on motor vehicle Accumulated depreciation on office equipment Trade receivables Trade payables Salaries and wages Investments Sundry expenses; Additional information: Sh. 000" 59.100 48,000 4,200 9,000 63.600 1,26 4,860 330 480 420 14.1605 1.395 20.730 510 5 660 2.760 2.400 1.200 3.105 15.900 3.6. 27.300 24,210 20,400 6.720 As at 30 June 2015, inventory was valued at Sh.14,640,000. This inventory included items valued at Sh.3,000,000 which had been sold and invoiced to a customer on 30 June 2015. The sales returns day book had been overcast by Sh.90.000. Discounts allowed amounting to Sh.360,000 had been posted to the discounts allowed account, but not to the trade receivables account. Depreciation is to be provided as follows: Motor vehicles Office equipment 20% per annum on cost 15% per annum on cost Rent received amounting to Sh 300.000 had not been recorded in the accounts since the proprietor converted the amount for personal use. The sales day book had been overcast by Sh.450,000. Required: (b) Income statement for the year ended 30 June 2015. Statement of financial position as at 30 June 2015. (12 marks). (8 marks) (Total: 20 marks)