Mende, Nyuki and Inzi were trading as partners and the following trial balance was prepared for the.
Mende, Nyuki and Inzi were trading as partners and the following trial balance was prepared for the
year at 31st May 2012: Kshs.000 Kshs. 000
Capital accounts:
Mende 3,100
Nyuki 1,500
Inzi 600
Drawings
Mende 500
Nyuki 115
Inzi 60
Salary of partners
Mende 300
Inzi 100
Purchases 4,750
Sales 10,800
Mende loan account 900
Provision for depreciation – plant & machinery 250
Plant and machinery 2,000
Loose tools at beginning of year 620
Land 900
Buildings 1,000
Wages 1,340
Creditors 2,470
Staff Salaries 2,750
Debtors 1,250
Trade expenses 250
Sales commission 78
Rates and insurance 250
Bills receivable 280
Bad debts expense 50
Telephone expenses 130
Carriage out 150
Stocks at beginning of year 4,750
Cash in hand 375
Bank overdraft 2,000
Furniture and fittings 400
Provision for depreciation –furniture & fittings 80
Heating and lighting 285
Printing and stationery 95
Investment income 1,000
Discount received 78 22,778 22,778
Notes:
a. Profit and losses are to be shared on the basis of 5:3:2 for Mende, Nyuki and Inzirespectively
b. Stocks net realizable value and cost at year end amounted to Kshs3,000,000 and Kshs.3,500,000 respectively loose tools amounted to 500,000
c. Trade expenses unpaid amounted to Kshs.155,000
d. Unpaid wages amounted to Kshs.100,000
e. Bad debts written off amounted to Kshs.50,000
f. Depreciation is to be provided at 2% on cost for buildings, 10% on reducing balance basis for plant and 20% on cost for office furniture
g. Interest on capital was agreed at 5%
h. Interest on drawings was set at 5%
i. Interest on loan was agreed at 6%
Required: prepare statements of comprehensive income and financial position on 31st May 2012
