c An income statement and a statement of financial position 5. The following trial balance has been extracted from the books of Jigi ligi Traders as at 31 July 20X2, the business: DR (Sh.) CR (Sh.) 350,000 175,000 Capital 10% 3 year loan Land Buildings Fixtures and fittings Rates Purchases and sales Returns Discounts Debtors and creditors Wages and salaries Administrative expenses Rents 228,000 265,000 42,000 3,500 950,000 9,000 11,000 90,000 62,000 5,000 1,333,000 7,000 13,000 85,000 140,000 22,500 7,000 2,000 26,500 Provision for depreciation 1.8. 20X1 - Buildings - Fixtures and fittings Provision for doubtful debts Advertising 12% five year loan Investment income Bank Consultancy charges Short term investments Stock at 1 August 20X1 Unearned income Loan interest paid 125,000 50,000 70,000 7,000 68,000 500,000 35,000 7,500 2,344,500 2,344,500 The following information about the business is also available: i. Sh.10,000 is to be written off as a bad debt and a general provision of 5% of the remaining balance is to be maintained for bad and doubtful debts. ii. Closing stock at 31 July 20X2 was valued at a cost of Sh.550,000. iii. The company has invested in securities with an expected income of Sh.70,000 per year which has yet to b or recorded. iv. 10% of the profits are to be drawn by the proprietor of the business for personal use. V. A freight expense on purchases of Sh.7,000 is yet to be recorded or paid. vi. Depreciation is yet to be provided as follows: Buildings: straight line method at the rate of 10% . Fixtures and fittings: reducing balance method at the rate of 10% vii. The following accruals for expenses at 31 July 20X2 need to be made: Rates Sh.1,500 Administration Sh.1,000. . Consultancy charges, Sh.3,000. viii. The following prepayments for expenses at 31 July 20X2 need to be taken into account. Salaries Sh.2,000. . Advertising Sh.12,000. Required: i. Adjusting entries to record the adjustments inherent in the additional information. ii. Adjusted trial balance at 31.7.20X2. ii. A statement of comprehensive income for the year ended 31 July 20X2. iv. A statement of financial position as at 31 July 20X2. charges nvestments ugust 20X1 come t paid 70,000 7,000 68,000 500,000 35,000 7,500 2,344,500 2,344,500 information about the business is also available: 3,000 is to be written off as a bad debt and a general provision of 5% of the remaining balance of debtors be maintained for bad and doubtful debts. ng stock at 31 July 20X2 was valued at a cost of Sh.550,000. any has invested in securities with an expected income of Sh.70,000 per year which has yet to be received 1. profits are to be drawn by the proprietor of the business for personal use. pense on purchases of Sh.7,000 is yet to be recorded or paid. on is yet to be provided as follows: ings: straight line method at the rate of 10% ces and fittings: reducing balance method at the rate of 10% ng accruals for expenses at 31 July 20X2 need to be made: Sh.1,500 nistration Sh.1,000. ultancy charges, Sh.3,000. ng prepayments for expenses at 31 July 20X2 need to be taken into account. es Sh.2,000. Eising Sh.12,000. ntries to record the adjustments inherent in the additional information.. al balance at 31.7.20X2. of comprehensive income for the year ended 31 July 20X2. of financial position as at 31 July 20X2. c An income statement and a statement of financial position 5. The following trial balance has been extracted from the books of Jigi ligi Traders as at 31 July 20X2, the business: DR (Sh.) CR (Sh.) 350,000 175,000 Capital 10% 3 year loan Land Buildings Fixtures and fittings Rates Purchases and sales Returns Discounts Debtors and creditors Wages and salaries Administrative expenses Rents 228,000 265,000 42,000 3,500 950,000 9,000 11,000 90,000 62,000 5,000 1,333,000 7,000 13,000 85,000 140,000 22,500 7,000 2,000 26,500 Provision for depreciation 1.8. 20X1 - Buildings - Fixtures and fittings Provision for doubtful debts Advertising 12% five year loan Investment income Bank Consultancy charges Short term investments Stock at 1 August 20X1 Unearned income Loan interest paid 125,000 50,000 70,000 7,000 68,000 500,000 35,000 7,500 2,344,500 2,344,500 The following information about the business is also available: i. Sh.10,000 is to be written off as a bad debt and a general provision of 5% of the remaining balance is to be maintained for bad and doubtful debts. ii. Closing stock at 31 July 20X2 was valued at a cost of Sh.550,000. iii. The company has invested in securities with an expected income of Sh.70,000 per year which has yet to b or recorded. iv. 10% of the profits are to be drawn by the proprietor of the business for personal use. V. A freight expense on purchases of Sh.7,000 is yet to be recorded or paid. vi. Depreciation is yet to be provided as follows: Buildings: straight line method at the rate of 10% . Fixtures and fittings: reducing balance method at the rate of 10% vii. The following accruals for expenses at 31 July 20X2 need to be made: Rates Sh.1,500 Administration Sh.1,000. . Consultancy charges, Sh.3,000. viii. The following prepayments for expenses at 31 July 20X2 need to be taken into account. Salaries Sh.2,000. . Advertising Sh.12,000. Required: i. Adjusting entries to record the adjustments inherent in the additional information. ii. Adjusted trial balance at 31.7.20X2. ii. A statement of comprehensive income for the year ended 31 July 20X2. iv. A statement of financial position as at 31 July 20X2. charges nvestments ugust 20X1 come t paid 70,000 7,000 68,000 500,000 35,000 7,500 2,344,500 2,344,500 information about the business is also available: 3,000 is to be written off as a bad debt and a general provision of 5% of the remaining balance of debtors be maintained for bad and doubtful debts. ng stock at 31 July 20X2 was valued at a cost of Sh.550,000. any has invested in securities with an expected income of Sh.70,000 per year which has yet to be received 1. profits are to be drawn by the proprietor of the business for personal use. pense on purchases of Sh.7,000 is yet to be recorded or paid. on is yet to be provided as follows: ings: straight line method at the rate of 10% ces and fittings: reducing balance method at the rate of 10% ng accruals for expenses at 31 July 20X2 need to be made: Sh.1,500 nistration Sh.1,000. ultancy charges, Sh.3,000. ng prepayments for expenses at 31 July 20X2 need to be taken into account. es Sh.2,000. Eising Sh.12,000. ntries to record the adjustments inherent in the additional information.. al balance at 31.7.20X2. of comprehensive income for the year ended 31 July 20X2. of financial position as at 31 July 20X2