Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Juma commenced business on 1 April 2017 with kshs 10,000 in the business bank account and a motor vehicle at kshs 7,500 which he transferred

image text in transcribed

Juma commenced business on 1 April 2017 with kshs 10,000 in the business bank account and a motor vehicle at kshs 7,500 which he transferred to the business. He failed to keep ledger accounts. During the year to 31st March 2018, Juma drew goods which cost kshs 6,400 for his own personal use and drew cash amounting to kshs 16,300. At 31st March 2018, the business assets and liabilities were: kshs Motor car at valuation 5,600 6,390 Closing stock at cost Rates prepaid Wages accrued due 720 940 Cash in hand 380 7,200 Fixtures & Fittings (cost kshs 4,000) Debtors 4,360 Creditors 2,620 Loan(at interest of 10% per annum) from Johnny 3,000 Interest on Loan accrued due 3,000 Bank overdraft 2,840 Required: a) Prepare a Statement of Affairs to show Juma's Capital at 31st March 2018. (4 marks) b) Calculate Capital at the start of business and using this figure together with his Capital at end of the financial year, calculate Juma's profit for the year ended 31st March 2018. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Management Science

Authors: Wayne L. Winston, Christian Albright

5th Edition

1497

Students also viewed these Accounting questions