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    Assignment 2

    Uploaded by

    Joseph Ondari
    The trial balance and additional information provided are for Rose Martins' sole proprietorship business for the year ending December 31, 2021. Students are required to prepare a statement of profit or loss and a statement of financial position using the trial balance and adjusting entries based on the additional information given. Adjustments include updating stock, prepaid/accrued items, depreciation, provisions, and other required adjustments to prepare the annual financial statements.

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    Assignment 2

    Uploaded by

    Joseph Ondari
    44 views2 pages
    The trial balance and additional information provided are for Rose Martins' sole proprietorship business for the year ending December 31, 2021. Students are required to prepare a statement of profit or loss and a statement of financial position using the trial balance and adjusting entries based on the additional information given. Adjustments include updating stock, prepaid/accrued items, depreciation, provisions, and other required adjustments to prepare the annual financial statements.

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    The trial balance and additional information provided are for Rose Martins' sole proprietorship business for the year ending December 31, 2021. Students are required to prepare a statement of profit or loss and a statement of financial position using the trial balance and adjusting entries based on the additional information given. Adjustments include updating stock, prepaid/accrued items, depreciation, provisions, and other required adjustments to prepare the annual financial statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    44 views2 pages

    Assignment 2

    Uploaded by

    Joseph Ondari
    The trial balance and additional information provided are for Rose Martins' sole proprietorship business for the year ending December 31, 2021. Students are required to prepare a statement of profit or loss and a statement of financial position using the trial balance and adjusting entries based on the additional information given. Adjustments include updating stock, prepaid/accrued items, depreciation, provisions, and other required adjustments to prepare the annual financial statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    ACC 1101: INRODUCTION TO ACCOUNTING I

    Assignment Three

    The following trial balance was extracted from the books of Rose Martins, a sole trader on 31
    December 2021

      Sh Sh
    Capital   6,880,000
    Freehold land and buildings at cost 1,120,000  
    Motor vehicles at cost 1,094,000  
    Furniture and fittings at cost 240,000  
    Stock at 1 January 2021 960,000  
    Purchases and sales 9,408,000 7,238,000
    Debtors and creditors 936,000 695,200
    Discounts allowed and received 195,200 119,200
    Returns inwards and outwards 16,000 28,800
    Rent received   44,000
    Loan (interest payable 5% per annum)   192,000
    Interest on loan 4,800  
    Provision for doubtful debts   27,200
    Bad debts 52,000  
    Wages and salaries 1,127,200  
    Drawings 256,000  
    General expenses 138,400  
    Bank balance 108,800  
    Rates and insurance 48,000  
    Provisions for depreciation:    
    Furniture and fittings   160,000
    Motor vehicle   320,000
      15,704,400 15,704,400
    Additional Information
    1. Stock at 31 December 2021 was valued at Sh. 1,360,000.
    2. Included in general expenses is a sum of Sh. 26,400 being expenses on electricity for
    domestic use.
    3. As at 31 December 2021, wages and salaries outstanding amounted to Sh. 66,400.
    4. Prepaid rates and insurance as at 31 December 2021 stood at Sh. 12,000.
    5. Interest paid is only a half of the amount due for the year ended 31 December 2021
    6. Provision for doubtful debts is to be adjusted to 5% of the debtors.
    7. Depreciation is to be provided for as follows:
    (i) Furniture and fittings at 5% on reducing balance method
    (ii) Motor vehicles at 20% on straight line method.
    8. Rent owing from a tenant who occupies a part of the building was Sh. 40,000 on 31
    December 2021

    Required:
    a) Statement of Profit or loss for the year ended 31 December 2021
    b) Statement of financial position as at 31 December 2021

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