(ix) Purchases of goods on credit Rs 12000 was recorded twice in the accounts.

Required: Prepare an Income statement for the year ended 31 December 2017 and a Statement of Financial position as at 31 December 2017. (30 Marks)

Kevin is a sole trader involved in the manufacture of heating systems for the construction industry. You have been appointed as the financial accountant and the following trial balance was extracted from its books as at 31 December 2017: Debit Rs Credit Rs 682000 457200 146000 400XX) 3645200 180700 ) Accumulated Depreciation - Premises - 1 January 2017 Administrative Expenses Trade Receivables / Trade Payables Drawings Purchases / Revenue / Allowance for irrecoverable Debts Long-Term Loan - 5% Hank Capital Premises at Cestat January 2017 Inventory at 1 January 2017 Current Tax Payable at 1 January 2017 Accumulated Depreciation - Vehicles - 1 January 2017 Distribution Costs Finance Costs Accumulated Depreciation - Equipment - 1 January 2017 ACCF 1102 - Assignment 4929850 11200 125000 68500 250XXXO 580000 245720 21200 104500 298600 6000 25670 3 3/8 Equipment at Cost at January 2017 Vehicles at Cost at I January 2017 800000 180000 6398720 6398720 As an accountant you discovered the following information: 0 (ii) Inventory was counted and valued at 3 January 2018 at Rs 246,800. On 2 January 2018, inventory was sold at a sales price of Rs 30,000. Kevin makes a margin on 20% on its sales. The sales transaction is accounted for in the 2018 % . financial statements Depreciation is to be charged as follows: Premises 2% Straight Line on Cost Equipment 10% Reducing Balance Vehicles 25% Straight Line on Cost Depreciation is charged in full in the year of purchase and none in the year of sale Kevin brought in his private vehicles at a cost of Rs 40000 which was not accounted in the books Irrecoverable debts written off Rs 6200 in December 2017 and an allowance for irrecoverable debts is maintained at 5%. (iii) (iv) W) On 1 July 2017, a new long term loan of Rs 100,000 (5% interest per annum) was received by the company The above trial balance has not been adjusted in respect of this new loan. Provide for the interest due on the long term loans (vi) Rs 10000 was due for administrative expenses . (vid Rs 12000 of distribution expenses were paid for the 4 months ended 28 February 2018. Vin) Carnage inwards paid by cheque Rs 1000 as not recorded in the books. TII