mark started business on January 01, 2018, with cash of shs. 50,000, furniture of shs. 10,000, goods of shs.2, 000 and machinery worth shs.20, 000. During the year he further introducedshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare final accounts for the year ended December 31, 2018.

Accounts from Incomplete Records

Amount shs.

Receipt from debtors.57,500

Cash sales45,000

Cash purchases25,000

Wages paid5,000

Salaries to staff17,500

Trade expanses6,500

Electricity bill of factory7,500

Drawings of Kamau3,000

Cash paid to creditors42,000

Discount allowed1,200

Discount received3,000

Bad debts written-off1,300

Cash balance at end of year20,000

mark used goods worth shs.2, 500 for private purposes, which is not recorded in the books. Charge depreciation on furniture 10% and machinery 20% p.a. on December 31, 2018, his debtors were worth shs.70, 000 and creditors shs.35, 000, stock in trade was valued on that date at shs.25, 000.

Required

i.Draw up the Statement of Affairs to calculate opening capital

ii.Prepare summary of Cash-Receipts and Payments Account

iii.Trading and Profit and Loss Account (Income Statement) for the year ended December 31, 2018.

iv.Balance Sheet (Statement of financial position) as of December 31, 2018