QUESTION 3

Additional information 1. Value of the closing stock Shs 4,500 2. Prepaid audit fee shs.2,500 3. Provide for corporation tax at a rate of 16% of the net profit 4. Directors proposed to pay dividends to the preference share holders . 5. Directors proposed to pay dividend to ordinary share holders at a rate of 15%. 6. Accrued insurance expense shs 3,200 Required using the vertical format prepare: 1. Trading and profit and loss and appropriation A/c for the year ended 31st December 2022. 2. Balance sheet as at 31st December 2022 . (16 marks) Question 3 The following is the cashbook and bank statement for Wafula wholesale shop for the month of May 2023.As at 31st May 2023 ,the bank account in the cash book had a debit balance of shs 39,200 while the bank statement had a credit balance of shs 50,520 . Required (a) Prepare the updated cash book as at 31/5/23 (b) Bank reconciliation statement as at 31/5/23 (12 marks)