FINANCIAL STATEMENTS

Mr. Amutabi has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 2003, the end of his financial year.

Capital83,887

Sales259,870

Trade creditors19,840

Returns out13,407

Provision for bad debts512

Discount allowed2,306

Discount received1,750

Purchases135,680

Returns in5,624

Carriage outwards4,562

Drawings18,440

Carriage inwards11,830

Rent, rates and insurance25,973

Heating and lighting11,010

Postage, Stationery and telephone2,410

Advertising5,980

Salaries and wages38,521

Bad debts2,008

Cash in hand534

Cash at bank4,440

Stock at 1 May 200215,654

Trade debtors24,500

Fixture and fittings at cost120,740

Provision for depreciation on fixtures and fittings (30.4.2003)63,020

Depreciation12,074

Additional Information

i)Stock at the close of business was valued at Sh. 17,750

ii)Insurance has been prepaid by Sh. 1,120

iii)Heating and lighting is accrued by Sh. 1,360

iv)Rates have been prepaid by Sh. 5,435

v)The provision for bad debts is to be adjusted so that it is 3% of trade debtors

Question:

Prepare Mr. Amutabi's Income statement for the year ended 30 April 2003 and a statement of financial position as at that date