Kamiro Furniture Enterprise (KFE)

Kamiro furniture Enterprise ends its financial every 31^st Dec. On 31^st Dec 2015 after balancing off its ledger accounts, the balances were transferred to trial balance as shown below.

TRIAL BALANCE FOR THE YEAR ENDED 31^ST DEC 2015

DETAILS	DR ($)	CR ($)
Sales Purchases Sales Returns Purchases Returns Wages Electricity Heating and Lighting Stationery Interest on loan Inventories (1.1.2015) Trade Receivables Trade payables Bank Loan Premises Motor Vehicles Drawings Capital Rent receivable	62,400 7,300 17,310 3,200 2,772 1,284 500 5,660 11,250 5,055 24,000 7,400 7,679 155,810	120,000 3,000 6,167 10,000 16,000 643 155,810

Additional information

i) Inventories at 31^st Dec 2015 were valued at $ 7500

ii)The loan was received on 1/4/2015 and is repayable in 2017.

iii) Expenses owing on 31^st Dec 2015 were; Wages $ 558, Heating and Lighting $328

iv) Electricity amounting to $800 and wages for $310 relate to Jan 2016.

v) Stationery for $284 was unused and Rent receivable for $210 was accrued.

REQUIRED

From the above information report on the performance and financial position of the company. (20 marks)

Discuss the relevance for the preparation of final financial reports to Kamiro Furniture Enterprise (KFE). (5 marks)