Question
The following balances were extracted from the books of Waumini Ltd as at 30 September 2021: KES KES Ordinary shares of KES.20 each. Fully paid
The following balances were extracted from the books of Waumini Ltd as at 30 September 2021: KES | KES |
Ordinary shares of KES.20 each. Fully paid | 600,000 |
8% preference shares KES.20 each. Fully paid | 100,000 |
Share premium account | 80,000 |
6% loan stock | 100,000 |
Trade creditors | I48,000 |
Trade debtors | 330,000 |
Sales | 4,800,000 |
Purchases | 4,220,000 |
Discounts allowed | 5,000 |
Discounts received | 13,000 |
Freehold buildings: | |
At cost | 500,000 |
Provision for depreciation | 50,000 |
Fixtures and fittings: | |
At cost | 640,000 |
Provision for depreciation | 256,000 |
Stock I October 2020 | 420,000 |
Returns outwards | 80,000 |
Establishment expenses | 130,000 |
Administration expenses | 56,000 |
Selling and distribution expenses | 167,000 |
Bad debts written off | 4,000 |
Provision for doubtful debts | 18,000 |
Retained profit I October 2020 | 362,000 |
Goodwill | 160,000 |
Bank overdraft | 25,000 |
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