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FINANCIAL STATEMENTS

Mr. Amutabi has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 2003, the end of his financial year.

Capital                                                                                                      83,887

Sales                                                                                                       259,870

Trade creditors                                                                                       19,840

Returns out                                                                                              13,407

Provision for bad debts                                                                               512

Discount allowed                                                                                       2,306

Discount received                                                                                      1,750

Purchases                                                                                                135,680

Returns in                                                                                                    5,624

Carriage outwards                                                                                      4,562

Drawings                                                                                                    18,440

Carriage inwards                                                                                       11,830

Rent, rates and insurance                                                                       25,973

Heating and lighting                                                                                 11,010

Postage, Stationery and telephone                                                          2,410

Advertising                                                                                                    5,980

Salaries and wages                                                                                    38,521

Bad debts                                                                                                      2,008

Cash in hand                                                                                                    534

Cash at bank                                                                                                 4,440

Stock at 1 May 2002                                                                                  15,654

Trade debtors                                                                                             24,500

Fixture and fittings at cost                                                                      120,740

Provision for depreciation on fixtures and fittings (30.4.2003)         63,020

Depreciation                                                                                                12,074

Additional Information

i)                   Stock at the close of business was valued at Sh. 17,750

ii)                 Insurance has been prepaid by Sh. 1,120

iii)               Heating and lighting is accrued by Sh. 1,360

iv)               Rates have been prepaid by Sh. 5,435

v)                 The provision for bad debts is to be adjusted so that it is 3% of trade debtors

Question:

Prepare Mr. Amutabi's Income statement for the year ended 30 April 2003 and a statement of financial position as at that date

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Subject: Accounting, Business
FINANCIAL STATEMENTS Mr. Amutabi has been trading for some years as a wine merchant. The following list of balances has been extracted from his...
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