A tobacco and confectioner retailer pays to his bank Account the amount of his takings, after…

A tobacco and confectioner retailer pays to his bank Account the amount of his takings, after retaining Kshs 1,000 per week for his personal use and after payment of wages and expenses, which for the year to 31st March 2009 were as follows:

Wages to Staff ……………………….Kshs 1,200,000

Goods………………………………….Kshs 220,000

Cleaning…………………………………Kshs 75,000 Carriage…………………………………Kshs 35,000

Incidentals………………………………Kshs 20,000

Transactions in his Bank Account during the year were:-

	Kshs”000”
Balance, 1st April 2008	2,000
Lodgments-
From shop Takings (cash)	30,100
Wholesale Accounts-Sales(cheques)	4,800
Defence Bond Interest	30
Total	36,930
Payments
Goods	30,830
Rent	400
Rates of Shop	345
Rates of private house	55
Lighting and Heating-Shop -House	200 20
Telephone, stationery and Advertising	150
Shop incidentals	70
Insurance,Fire,Plate Glass etc	60
Insurances, Life and Endowment	30
Repairs	150
New fixtures	600
Accountancy charges	40
Income Tax	900
Personal Accounts-School Fees etc	180
Balance,31st March 2009	2,900
Total	36,930

Debtors, creditors and stock were:

	1st April 2008	31st March 2009
	Kshs “000”	Kshs “000”
Creditors-Goods purchased	2,900	3,195
Creditors-expenses:
Rent Electric Light Telephone, stationery Accountancy	80 25 45 40	– 30 40 40
Debtors-Wholesale Accounts	490	430
Stocks	2,050	1,875

Required:

a) Prepare a trading and Profit and Loss Accounts for the year to 31st March 2009, and

(12 marks)

A Balance sheet as at that date.