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The following is the trial balance of Kibe Traders as at 30 th June 2022 Shs. Shs. Sales 12,150,000.00 Stock 1 st July 2021918,000.00 Deposit

  1. The following is the trial balance of Kibe Traders as at 30th June 2022
Shs. Shs. Sales 12,150,000.00 Stock 1st July 2021918,000.00 Deposit account 22,000.00 Cash at bank 540,500.00 Motor van at cost350,000.00 Fixtures and Fittings at cost90,000.00 Purchases10,406,000.00 Trade debtors818,000.00 Salaries and wages57,800.00 Carriage outwards116,000.00 Carriage inwards95,800.00 Water and electricity11,200.00 Freehold land and building at cost1,410,000.00 Returns22,400.00 19,000.00 Capital 491,700.00 20% loan from Unity-Finance bank 420,000.00 Loan interest63,000.00 Discounts90,000.00 304,000.00 Office expenses45,000.00 Rent and rates105,000.00 Commission received 20,000.00 Trade creditors 1,700,000.00 Drawings95,000.00 Cash in hand8,000.00 Provision for depreciation Motor van Fixtures and fittings 17,000.00 Bad debts35,000.00 Provision for bad debts 1st July 2021 37,000.00 15,298,700.00 15,298,700.00

Additional Information

  1. Closing stock was valued at shs. 800,000
  2. The proprietor had taken goods worth shs. 14,000 for domestic use
  3. Prepaid rent for the three months of July to September of the year 2022 amounted to Shs. 24,000.
  4. A further amount of sh. 10,000 is to be written off as bad debts.
  5. The provision for bad debts at the end of the year is to be adjusted to 5% of trade debtors.
  6. Depreciation on fixed assets is to be provided as follows:

Motor vehicles - 20% on straight line basis

Fixtures and Fittings 10% on reducing balance basis

  1. An electricity bill for the month of June 2022 amount to sh. 800 was received on 3 July 2022
  2. Loan interest amounting to sh. 21,000 has not been paid.

Required:

  1. Trading, profit and loss account for the year ended 30thJune 2022 (10mks)

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