Question One The following trial balance patroing to kagame a Sole trader as at 31st October 2014 Addition information: i) Stock in trade as at 31s4 October 2014 was sh 593,040 ii) Rates and insurance were prepaid to the extent of sh 2,400 and sh 2,820 respectively as at 31st October 2014. iii) Electricity due as at 31st October 2014 shs 6,000 iv) Provision for doubtful debts is to be adjusted to 5% of debtors after considering bad debts of sh. 20,160 v) Rent received as at 31s October 2014 sh 15,000 vi) Depreciation on motor vehicle has been on straight line and is to be charged at 20% P.a. vii) No depreciation to charged to building viii) In November 2013, a motor vehicle which had been purchased sh. 160,000 . The only record of this disposal is the entry in the proceeds from sole of motor vehicle account. Required: a) Income statement for the year ended 31st October 2014 b) Balance sheet as at 31st October 2014 . (25marks) c) Michael Macharia started a business with 1,000,000, of which 450,000 was deposited into the business bank account. The following transactions relate to his business in the month of June 2016. June1. Bought land and paid by cheque, Sh. 250,000 3. Bought goods for Kshs. 30,000 in cheque and Sh. 15,000 by cash. 7 Sold goods on credit to Caroline Sh.30,000 and Sh.15,000 to Jane on credit. 10 Caroline returned goods worth 3,000 and paid a cheque of 20,000. 12 Jane paid 10,000 by cheque and Sh.2,500 by cash. 15 Purchased goods on credit from Nancy Mwangi Sh. 45,000. 18. Paid Nancy Shs. 40,000 by cheque. 20. Paid rent Shs 70,000 by cheque. 25. Paid wages and salary Sh.42,000 by cheque. 26. Bought equipment for Sh.200,000 and paid by cheque. 27. Withdrew from bank 30,000 for business use and 15,000 for personal use. Required: Ledger accounts to record the above transactions (10 marks) Extract his trial balance as at 30th June 2016 . (5 marks Question One The following trial balance patroing to kagame a Sole trader as at 31st October 2014 Addition information: i) Stock in trade as at 31s4 October 2014 was sh 593,040 ii) Rates and insurance were prepaid to the extent of sh 2,400 and sh 2,820 respectively as at 31st October 2014. iii) Electricity due as at 31st October 2014 shs 6,000 iv) Provision for doubtful debts is to be adjusted to 5% of debtors after considering bad debts of sh. 20,160 v) Rent received as at 31s October 2014 sh 15,000 vi) Depreciation on motor vehicle has been on straight line and is to be charged at 20% P.a. vii) No depreciation to charged to building viii) In November 2013, a motor vehicle which had been purchased sh. 160,000 . The only record of this disposal is the entry in the proceeds from sole of motor vehicle account. Required: a) Income statement for the year ended 31st October 2014 b) Balance sheet as at 31st October 2014 . (25marks) c) Michael Macharia started a business with 1,000,000, of which 450,000 was deposited into the business bank account. The following transactions relate to his business in the month of June 2016. June1. Bought land and paid by cheque, Sh. 250,000 3. Bought goods for Kshs. 30,000 in cheque and Sh. 15,000 by cash. 7 Sold goods on credit to Caroline Sh.30,000 and Sh.15,000 to Jane on credit. 10 Caroline returned goods worth 3,000 and paid a cheque of 20,000. 12 Jane paid 10,000 by cheque and Sh.2,500 by cash. 15 Purchased goods on credit from Nancy Mwangi Sh. 45,000. 18. Paid Nancy Shs. 40,000 by cheque. 20. Paid rent Shs 70,000 by cheque. 25. Paid wages and salary Sh.42,000 by cheque. 26. Bought equipment for Sh.200,000 and paid by cheque. 27. Withdrew from bank 30,000 for business use and 15,000 for personal use. Required: Ledger accounts to record the above transactions (10 marks) Extract his trial balance as at 30th June 2016 . (5 marks