Question - The following information relates to Heinemann and sons limited as at 31st Dec 2005.
'Shs'
|
Stock January
|
60,000
|
|
Freehold premises
|
250,000
|
|
Bills receivable
|
40,000
|
|
Purchases
|
290,000
|
|
Salaries and wages
|
45,000
|
|
Sales
|
530,000
|
|
Fixtures and fittings
|
35,000
|
|
Discount allowed
|
17,500
|
|
Discount received
|
14,500
|
|
Plant and machinery
|
150,000
|
|
Rates
|
15,600
|
|
Advertising
|
20,400
|
|
Insurance
|
13,800
|
|
General expenses
|
17,200
|
|
Provision for bad debts
|
11,800
|
|
Debtors
|
70,000
|
|
Bills payable
|
25,000
|
|
Creditors
|
53,000
|
|
Cash in hand
|
12,400
|
|
Bank overdraft
|
28,600
|
|
Drawings
|
16,000
|
The following additional information is also provided:
- Provide for depreciation of plant and machinery at 10% and fixtures and fittings at 15% p.a.
- Increase the provision for bad debts to an amount equal to 4% of debtors.
- Prepaid insurance amounts to 10,500
- Rates accrued Sh.10,400
- Stock 31st Dec 70,000
- During the year Heineman & Son Ltd took goods worth Sh.12,000 for personal use.
Required:
Arrange balances in a trial balance
Prepare an income statement and statement of financial position.
NB: show all your workings.