OUESTION FIVE

Mr Beer has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at $30$ April $2020,$ the end of his most recent financial year.

Capital

Sales

Trade creditors

Returns out

Provision for bad debts

Discounts allowed

Discounts received

Purchases

Returns inwards

Carriage outwards

Drawings

Carriage inwards

Rent, rates and insurance

Heating and lighting

Postage, Stationery and telephone

Advertising

Salaries and wages

Bad debts

Cash in hand

Cash at bank

Stock as at $1$ May $2019$

Trade debtors

Fixtures and fittings at cost

Provision for depreciation on fixtures and fittings as at $31$ april$2020$ Depreciation

The following additional information as at $31$ April $2020$ is available:

a$)$ Stock at the close of business was valued at Ksh$17,750$

b$)$ Insurances have been prepaid by Ksh $1,120$

c$)$ Heating and lighting is accrued by Ksh $1,360$

d$)$ Rates have been prepaid by Ksh $5,435$

e$)$ The provision for bad debts is to be adjusted so that it is $3\%$ of trade debtors.

Required:

Prepare Mr$.$ Beer's income statement for the year ended ${30}^{th}$ April $2020$ and a statement of financial position as at that date.

Ksh

$83,887$

$259,870$

$19,840$

$13,407$

$512$

$2,306$

$1,750$

$135,680$

$5,624$

$4,562$

$18,440$

$11,830$

$25,973$

$11,010$

$2,410$

$5,980$

$38,521$

$2,008$

$534$

$4,440$

$15,654$

$24,500$

$120,740$

$63,020$

$12,074$