Mr. Shamakhokho runs a sole proprietorship business. He sells cookies and wheat products. He has no Accounting background and therefore doesnt know how to maintain proper books of accounts using the double entry concept. He however maintains some records in his note book. He has been served with a demand note by the Kenya Revenue Authority for taxes not paid. He has approached you to prepare for him financial statements to enable him meet the tax obligation.

From the scanty records you have ascertained the following

Balances as at 1st March 2019 Kshs.

Furniture & Fittings 118,000

Motor vehicles 150,000

Sundry creditors 52,000

Cash in hand 25,500

Cash at bank 43,000

Stock in trade 102,000

Sundry debtors 21,500

Balances as at 30^th April 2020 Kshs

Cash in hand 38,000

Cash at bank 60,000

Motor vehicles 200,000

Furniture & Fittings 125,000

Sundry debtors 27,000

Stock in trade 100,000

Sundry creditors 79,000

He informed you that during the year,

1. He introduced a new capital of 85,000 and withdrew for his personal expenditure 19,000.
2. Prepaid expenses for Electricity and lighting was Kshs, 12,000.
3. He had not paid salaries for the month of April of Kshs 6,000.

Required.

Prepare a statement showing Mr. Shamakhokhos profit or loss for the year ended 30^th April 2020.

Mr. Shamakhokho runs a sole proprietorship business. He sells cookies and wheat products. He has no Accounting background and therefore doesnt know how to maintain proper books of accounts using the double entry concept. He however maintains some records in his note book. He has been served with a demand note by the Kenya Revenue Authority for taxes not paid. He has approached you to prepare for him financial statements to enable him meet the tax obligation.

From the scanty records you have ascertained the following

Balances as at 1st March 2019 Kshs.

Furniture & Fittings 118,000

Motor vehicles 150,000

Sundry creditors 52,000

Cash in hand 25,500

Cash at bank 43,000

Stock in trade 102,000

Sundry debtors 21,500

Balances as at 30^th April 2020 Kshs

Cash in hand 38,000

Cash at bank 60,000

Motor vehicles 200,000

Furniture & Fittings 125,000

Sundry debtors 27,000

Stock in trade 100,000

Sundry creditors 79,000

He informed you that during the year,

1. He introduced a new capital of 85,000 and withdrew for his personal expenditure 19,000.
2. Prepaid expenses for Electricity and lighting was Kshs, 12,000.
3. He had not paid salaries for the month of April of Kshs 6,000.

Required.

Prepare a statement showing Mr. Shamakhokhos profit or loss for the year ended 30^th April 2020.