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The following balances were extracted from the books of Nurse, a sole trader, as at 31st March, 2019 Shs Shs Sales 356,000 Purchases 194,900 Purchases
The following balances were extracted from the books of Nurse, a sole trader, as at 31st March, 2019 Shs Shs Sales 356,000 Purchases 194,900 Purchases returns 4,600 Sales returns 6,000 Discount received 3,800 Creditors 33,000 Debtors 24, 000 Capital 249,000 Provision for doubtful debts 3,400 Machinery 300,000 Provision for depreciation on machinery 40,000 Insurance 24,000 Salaries 48,000 Rent 56,000 Stock (1st April, 2018) 20,000 Bank 6,900 Drawings 10,000 689,800 689,800 Additional information: i) Stock at 31st March, 2019 was valued at sh. 48,000 ii) At 31st March, 2019 prepaid insurance amounted to sh. 4, 200 iii) Rent accrued was sh. 8,000 iv) Depreciation on machinery is provided at 20% per annum on cost. Required: i) Income statement for the year ended 31st March, 2019. (12 Mark) ii) Statement of financial position as at at 31st March, 2019. (8 Marks)
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