The following trial balance was extracted from the books of Rydone a sole trader at 31st December 2021:
Ksh Ksh.
Drawings/Capital 2148 20271
Debtors/Creditors 7689 5462
Purchases/Sales 62101 81742
Rent and Rates 880
Light and heat 246
Salaries and wages 8268
Bad debts 247
Provision for bad debts 326
Stock in trade 31st Dec 2020 9274
Insurance 172
General Expenses 933
Bank balances 1582
Motor van at cost/Provision for depreciation 8000 36000
Proceeds on sale of van 250
Motor expenses 861
Freehold premises at cost 15000
Rent received 750
Provision for depreciation on buildings 5000
117401 117401
The following matters are to be taken in to account:
1. Stock in trade at 31st December 2021 was Ksh.9884
2. Rates paid in advance at 31st December 2021 Ksh.40
3. Rent receivable due at 31st December 2021 Ksh.250
4. Lighting and heating due at 31st December 2021 sh.85
5. Provision for doubtful debts to be increased to Ksh.388
6. Included in the amount for insurance Ksh.172 is an item for Ksh82 for motor insurance and this
amount should be transferred to motor expenses.
7. Depreciation has been and is to be charged on vans at an annual rate of 20% on cost.
8. Depreciate buildings Ksh.500
9. On 1st January 2021 a van which had been purchased for Ksh.1000 on 1st January 2018 was sold for
Ksh250. The only record of matter is the credit of Ksh.250 to “Proceeds of sale on van” account.
Required:
A Statement of Profit and Loss for the year ended 31st December 2021 and a Statement of Financial
Event Venue
New York, United States
USD 45.00
