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The following balances are from the Ledger of Elgon a retail trader in Masaka District as at 31 December 20X 8. The assistant accountant who

  1. The following balances are from the Ledger of Elgon a retail trader in Masaka District as at 31 December 20X 8. The assistant accountant who copied these balances did not indicate whether it is a debit or credit balance.

$

Opening inventory

5,667,000

Purchases

52,476,000

Sales

96,405,000

Carriage inwards

1,143,000

Carriage outwards

1,417,500

Postage & Telephone

1,016,100

Return in wards

2,940,000

Return outwards

1,440,000

Trade receivables

9,540,000

Trade payables

3,000,000

Discount received

750,000

Cleaning expenses

900,000

Repairs & maintenance

600,000

Discount Allowed

654,000

Sundry operating expenses

11,430,000

Wages & salaries

20,826,000

Allowance for doubtful debts

546,000

Bad debts written off during the year

440,400

Rent paid

360,000

Office equipment at cost

7,170,000

Accumulated depreciation (office equipment)

2,661,000

Proceeds from the sale of office equipment

546,000

Office equipment additions during the year

1,590,000

Property rates paid

240,000

Free hold land

5,649,000

Capital

19,047,000

  1. Prepare a Trial Balance as at 31 December 20X8 from the above list of balances assuming that there was nothing abnormal on the above accounts.

Additional notes

  1. Closing inventory amounted to $6,780,000
  2. Carriage inwards prepaid by $82,500; Sundry operating expenses were prepaid by $150,000 and accrued by $405,000; the rates for property were accrued by $60,000 and 22,500 accrued for carriage out wards. Salaries & wages prepaid by 52,500 and accrued by 30,000
  3. During the year, equipment which had cost $975,000,000 with accumulated depreciation of 840,000, was sold for $450,000; Further bad debt of 240,000 is to be written off

  1. Depreciate Office Equipment at 20% per annum on straight-line basis. Allow a full year charge in the year of purchase and none in the year of sale.

Prepare

  1. Elgons Statement of comprehensive Income for the period ended 31 December 20X8.
  2. The Statement of Financial Position as at 31 December 20X8

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