Alex Mbaya operates a small business and does not keep his books using the double entry system but..
Alex Mbaya operates a small business and does not keep his books using the double entry system but the following information.
| 31-Dec-08 | 31-Dec-09 |
| Shs. |
Shs. |
| Creditors for Goods 22,000 |
18,500 |
| Debtors for Goods 50,000 |
46,000 |
| Wages Prepaid – |
4,000 |
| Bank Balance 39,000 |
80,000 |
| Cash Balance 6,000 |
18,000 |
| Stock 15,000 |
10,000 |
| Additional informationa) All sales are made in credit
b) Amounts received from Debtors Cash Sh 19,000 |
|
| Cheques Sh 85,000 | |
| c)Amount paid to suppliersCash Sh 5,000
Cheques Sh 23,500 |
|
d)Expenses paid during the year:
Wages in Cash Sh 2,000
Wages by Cheques Sh 12,000
Rent by cheque Sh 6,000
e) Cash drawings from the bank shs.2,500 for personal use
f) Furniture which cost Shs. 40, 000 is depreciated at the rate of 10%
Required:
i. A statement of Affairs as at 31st December 2008.
ii. Trading Profit and loss account for the year ended 31 December 2009
iii. Balance sheet as at 31 December 2009 (20 Marks)
