Mr.Igiria started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 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

Mr.Igiria started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 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 Kshs.

Receipt from debtors. 57,500

Cash sales 45,000

Cash purchases 25,000

Wages paid 5,000

Salaries to staff 17,500

Trade expanses 6,500

Electricity bill of factory 7,500

Drawings of Karue 3,000

Cash paid to creditors 42,000

Discount allowed 1,200

Discount received 3,000

Bad debts written-off 1,300

Cash balance at end of year 20,000

Mr.Igiria used goods worth Kshs.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 Kshs.70, 000 and creditors Kshs.35, 000, stock in trade was valued on that date at Kshs.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