Question: Mr Ahmed Kumar runs a snack distribution business located in the Light Industrial area in Lusaka....

Mr Ahmed Kumar runs a snack distribution business located in the Light Industrial area in Lusaka. The following list of balances was extracted from his ledger as at 31 March, 2020; the end of his most recent financial year.

K

Capital 83,887

Sales 259,870

Trade accounts payable 19,840

Returns outwards 13,407

Allowance for doubtful debts 512

Discounts allowed 2,306

Discounts received 1,750

Purchases 135,680

Returns inwards 5,624

Carriage outwards 4,562

Drawings 18,440

Carriage inwards 11,830

Rent, rates and insurance 25,973

Heating and lighting 11,010

Postage, stationery and telephone 2,410

Advertising 5,980

Salaries and wages 38,521

Bad debts 2,008

Cash in hand 534

Cash at bank 4,440

Inventory as at 1^st April 2019 15,654

Trade accounts receivable 24,500

Fixtures and fittings - at cost 120,740

Prov. for depreciation on fixtures and fittings 31/03/2020 63,020

Depreciation 12,074

The following additional information as at 31^st March, 2020 is available:

(a) Inventory at the close of business was valued at K17,750

(b) Insurances have been prepaid by K1,120

(c) Heating and lighting is accrued by K1,360

(d) Rates have been prepaid by K5,435

(e) The allowance for doubtful debts is to be adjusted so that it is 3% of trade accounts receivable.

Required:

For the year 2020, prepare Mr Kumars:

Unadjusted Trial Balance as at 31^st March, 2020.

[10 Marks]

General Journal recording the adjustments highlighted above.

[10 Marks]

Trading, Profit or Loss statement for the year ended 31^st March, 2020.

[10 Marks]

Statement of financial position as at 31^st March, 2020.

[10 Marks]

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