Question 2 The following information relates to Kibuga Women's Group (KWG) whose aim is to impart women with entrepreneurial skills to enhance their household incomes. KWG also operates a bakery to raise money to finance the activities of the group. Their receipts and payments account for the year ended 31 December, 2018 is as follows: Details Shs '000' Details Shs '000' Balance b/d (1 January, 2018) 32,000 Balance b/d (1 January, 2018) 2,000 Donations 60,000 Bakery material purchases 18,450 Fundraising income 15,520 Utilities 10,050 Membership income 11,250 Salaries 8,000 Confectionaries sales 54,000 Repairs and maintenance 1,560 Training costs 2,112 Motivational speaker allowances 1,200 Motivational visits 1,480 Storage costs (bakery) 870 Balance c/d 127,048 172.770 172.770 Additional information: 1. The following balances were available in 2018: 1 January 31 December Shs '000' Shs '000' Bakery delivery van (cost Shs 16 million) 12,800 ? Baking equipment (cost Shs 36 million) 28,800 ? Buildings (cost Shs 52.5 million) 50,400 ? Furniture (cost Shs 8.4 million) 6,720 ? Confectionary inventory 1,400 1,100 Prepaid utilities 2,000 3,000 Baking flour of Shs 540,000 expired and this has not been accounted for in the books. Apportionment of costs to be as follows: Item Bakery KWG Utilities 60% ? Salaries ? 1/5 Repair & maintenance 70% ? Depreciation of furniture 14 ? Depreciation of buildings 50% 50% 2. 3. 4. 5. 6. 7. The bakery paid Shs 250,000 to deliver confectionaries to customers and Shs 315,000 to transport baking flour to the bakery. These costs were omitted in the books of account. Membership fee is paid by women to join the group. Motivational costs and training costs relate to KWG. Depreciation is provided for, on cost per annum, as follows: Asset Rate (%) Delivery van 10 Baking equipment 10 Furniture 10 Building 2 Required: Prepare for KWG a statement of: (a) (b) affairs as at 1 January, 2018. profit or loss for the year ended 31 December, 2018