The following balances were extracted from the books of Bashara Kabwa Enterprises, a wholesale business, as at 31 October 2018:
Trade receivables 990,000
Sales returns 79,420
Trade payables 330,000
Purchases returns 120,340
Discount received 93,720
Provision for depreciation: Motor vehicles 176,000
Fixtures and fittings 63,800
Allowances for doubtful debts 44,000
15% bank loan 220,000
Salaries and wage 1,034,000
Discount allowed 54,560
Bank balance 568,260
Cash in hand 26,400
Electricity expenses 103,840
Rent and rates 54,560
Freehold premises (cost) 1,569,700
Fixtures and fittings (cost) 334,400
Motor vehicles (cost) 462,000
Postage and telephone expenses 44,000
Insurance premiums 13,200
Bad debts written off 15,840
Motor vehicle expenses 84,920
Inventory (1 November 2017) 1,393,480
Interest on bank loan 16,500
1. The value of inventory as at 31 October 2018 was Sh. 1,036,400
2. Sales includes Sh. 300,000 worth of goods sold by Bashara Kabwa Enterprises agents, who are allowed 15% commission on such sales. This transaction has not been recorded in the books.
3. Depreciation is to be provided as follows:
Fixtures and fittings – 10% per annum on reducing balance basis.
Motor vehicle – 15% per annum on straight line basis.
4. Annual insurance premium amounted to Sh. 12,000.
5. As at 31 October 2017, there was a balance of Sh. 65,000 received from a customer in cash.
6. Salaries and wages were in arrears of Sh. 35,000
7. The Electricity bill for the month of October of Sh. 14,500 was received on 5 November 2018.
8. An allowance of 5% is to be maintained for doubtful debts.
9. Goods worth Sh. 48,840 had been distributed to potential customers as free samples.
a) Income statement for the year ended 31 October 2018
Statement of Financial position as at 31 October 2018
In a random sample of 400 measurements, 227 possess the characteristic of interest, A.a. Use a 95% confidence interval to estimate the true proportion p of measurements i...Aug 07 2020
ConnectCom, a telecom company, has to upgrade its CRM (customer relationship management) software to have a better and efficient customer services and to abide by the ins...May 22 2018
A loan for $7,000 is to be repaid by instalments at the end of each quarter for 5 years. The quarterly instalment is more likely to approximateSelect one:Select one:a. $2...Apr 14 2021
Select ONE company (based on your reading or the organisation that you are working in) which has developed innovative products in 2500 words.Select ONE innovative commerc...Jun 03 2021
Lowery, Keegan, and Feeney have income ratios of 5 : 3 : 2 and capital balances of $34,000, $31,000, and $28,000, respectively. Noncash assets are sold at a gain. After c...Aug 13 2021
Choose the correct answer.Ms. Hernandez, (who, whom) we thought would never be hired, did well in her first assignment.Jun 18 2021
Write the balanced reaction between ammonium nitrate and water.May 14 2021
The equation for determining real GDP for the year X is:a. b. c. d.May 07 2021
dar dy 4. (a) Find if: y = log(x” – 22 + 2). cse® (V1 – 22). (b) Find the points at which the tangent lines to the curve y = 3x - cosh'(x) are horizontal. (In finding x, ...May 07 2021
You work for a bank as a business data analyst in the credit card risk-modeling department. Your bank recently conducted a bold experiment: over a short time interval thr...May 29 2021