Nicolette, a sole proprietor, extracted the following trial balance from her ledgerson 31 March 2017.Dr (Sh.) Cr (Sh.)Sales 126,500Purchases 99,850Premises at cost 100,000Depreciation for premises 1 April 2016 25,000Plant at cost 18,000Depreciation for plant 1 April 2016 2,300Wages and salaries 8,900Rent 7,500Stock at 1 April 2016 5,000Capital at 1 April 2016 80,000Drawings 25,000Carriage inwards (freight-in) 4,000Receivables 27,500Bad debts written off 5,000Payables 16,000Rent revenue 2,000Bank balance 18,950Loan 30,000300,750 300,750P.O. Box 6215700200 Nairobi - KENYATelephone: 891601-6Fax: 254-20-891084E-mail:[email protected]. M. E. C. E. ACuea/ACD/EXM/APRIL 2017/Commerce Page 2ISO 9001:2008 Certified by the Kenya Bureau of StandardsAdditional information:a. Stock at 31 March 2017 was valued at Sh12,500.b. Wages and salaries accrued amounted to Sh 700c. Loan interest of 10 per cent per annum had not yet been paid.d. Rent had been prepaid by Sh300.e. Provision for doubtful debts of 2 per cent is to be made.f. Depreciation is provided at 2 per cent of cost on premises and at 10 per cent onplant.Required:Prepare the following statements for Nicolette;a) Income statement for the year ended 31 March 2017. (15 marks)b) Balance sheet as at 31 March 2017.

The following trial balance has been extracted from the ledger of Herbert Howell, a sole trader,as at 31 May 2019, the end of his most recent financial year.Herbert HowellTrial Balance As At 31 May 2019Dr CrSh. Sh.Property at cost 90,000Equipment at cost 57,500Provision for depreciation (as at 1 June2018)Property 12,500Equipment 32,500Stock as at 1 June 2018 27,400Purchases 259,600Sales 405,000Discounts allowed 3,370Discounts received 4,420Wages and salaries 52,360Bad debts 1,720Loan interest 1,560Carriage out 5,310Other operating expenses 38,800Trade debtors 46,200Trade creditors 33,600Provision for bad debts 280Cash on hand 151Bank overdraft 14,500Drawings 28,93013% loan 12,000Capital, as at 1 June 2018 ______ 98,101612,901 612,901The following additional information as at 31 May 2019 is available:(a) Stock as at the close of business was valued at Sh.25,900.(b) Depreciation for the year ended 31 May 2019 has yet to be provided as follows:Property - 1% using the straight-line methodEquipment - 15% using the straight-line methodCUEA/ACD/EXM/SEPT - DEC 2022/GABA/BCOM Page 4ISO 9001:2015 Certified by the Kenya Bureau of Standards.(c) Wages and salaries are accrued by Sh.140.(d) Other operating expenses include certain expenses prepaid by Sh.500. Other expensesincluded under this heading are accrued by Sh.200.(e) The provision for bad debts is to be adjusted so that it is 0.5% of trade debtors as at 31 May2019.(f) Purchases include goods valued at Sh.1,040, which were withdrawn by Mr Howell for hisown personal use.Required:Prepare Mr. Howell’s trading and profit and loss account for the year ended 31 May 2019 and hisbalance sheet as at 31 May 2019.

The following trial balance was extracted from the books of Rose Martins, a sole trader on 31 December 2005. Sh. Sh.Capital 2,880,000Freehold land and buildings at cost 1,120,000Motor vehicles at cost 1,094,000Furniture and fittings at cost 240,000Stock at 1 January 2005 960,000Purchases and sales 9,408,000 11,088,000Debtors and creditors 936,000 695,200Discounts allowed and received 195,200 119,200 Returns inwards and outwards 16,000 28,800Rent received 44,000 Loan (interest payable 5% per annum) 192,000Interest on loan 4,800Proceeds of sale of motor vehicle 150,000Provision for doubtful debts 27,200Bad debts 52,000Wages and salaries 1,127,200Drawings 256,000General expenses 138,400Bank balance 108,800Rates and insurance 48,000Provisions for depreciation: Furniture and fittings 160,000 Motor vehicle 320,000 15,704,400 15,704,400Notes:1. Stock at 31 December 2005 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. A vehicle purchased on 1 January 2003 at Sh. 450,000 was sold for Sh. 150,000. The only record of the transaction is the credit of Sh. 150,000 to the proceeds of sale of motor vehicle account.4. As at 31 December 2005, wages and salaries outstanding amounted to Sh. 66,400.5. Prepaid rates and insurance as at 31 December 2005 stood at Sh. 12,000.6. Interest paid is only a half of the amount due for the year ended 31 December 2005.7. Provision for doubtful debts is to be adjusted to 5% of the debtors.8. 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.9. Rent owing from a tenant who occupies a part of the building was Sh. 40,000 on 31 December 20005.Required:a) Profit and loss account for the year ended 31 December 2005.b) Balance sheet as at 31 December 2005.

The trial balance extracted from the books ofTim on 31/12/2020 is as follows.Dr. Cr.Kshs. Kshs.Capital 217,500Land and building 150,000Equipment at cost 37,500Depreciation provision for equipment 15,000Fitting at cost 37,500Depreciation provision fittings 17,250Stock 21,375Salaries and wages 57,750Purchases 225,000Administrative expenses 30,000Cash in bank 37,500Cash at hand 7,500Debtors 37,500Creditors 21,375CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 3ISO 9001:2015 Certified by the Kenya Bureau of Standards.Sales 375,000Carriage out ward 1,500Carriage inward 750Return inward 1,125Return out ward 1,400Discount allowed 2,250Discount received 1,225Bad debts written 1,500Total 648,750 848,750Additional informationi) Closing stock was valued at kshs30,000ii) Wages paid in advance shs2000iii) Administrative expenses outstanding shs 1500iv) Depreciation to be charged 10% on cost of equipment and 5% on cost of fittings.v) 5% provision for doubtful debts .Required;i) Trading profit and loss account for the period ending 31/12/20 (13 Marks)ii) Balance sheet as at 31/12/20

Salary and WagesCash PSPurchases.Sundry ExpensesParticularsStock (1.4.2019)Trial Balance as on 31st March, 2020.Debit33.000SalesFrofollowing Trial Balance and ustments of Kumbhar and Maroti youprepare Tradingand Profit and Loss Account for the year endedon 31st March, 2020 and a Balance Sheet as on that date.are requiredParticularsCredit?3,30,0004.200Discount p4,00010.000Creditors Ln20,0002.25.200Bank Overdraft10,00013,600Interest on Investment8,000Wages T-12.000Capitals:Bills Receivable6.000Kumbhar60,000Travelling Expenses2.000Maroti40,000Bad Debts c3,000Factory Expenses8,000Commission34504,000Investments pl20,000Debtors c40,000Tools and Equipments6.000urniture As12,000Goodwill Ag21,000wilding As50,0004.72,0004,72,000Adjustments:1) Partners share Profit and Losses in the ratio of their capitals.Closing Stock is valued at Cost Price 40,000 and at Market Price * 45,000.Kumbhar has withdrawn goods worth 1,200 for his own use, but no entry is made in the books.Uninsured goods worth 12,000 were lost by fire.* 450 are to be written off as bad debts.Unpaid Expenses: Salary and Wages 800 and Rent * 1,200.Depreciate Building @ 7.5% p.a​

At the beginning of the financial year on 1 April 2020, a company had a balance on plant account of Sh 372,000 and on provision for depreciation of plant account of Sh 205,400. The company’s policy is to provide depreciation using the reducing balance method applied to the non-current assets held at the end of the financial year at the rate of 20% per annum. On 1 September 2020 the company sold for Sh 13,700 some plant which it had acquired on 31 October 2016 at a cost of Sh 36,000. Additionally, installation costs totalled Sh 4,000. During 2018 major repairs costing Sh 6,300 had been carried out on this plant and, in order to increase the capacity of the plant, a new motor had been fitted in December 2018 at a cost of Sh 4,400. A further overhaul costing Sh 2,700 had been carried out during 2019. The company acquired new replacement plant on 30 November 2020 at a cost of Sh 96,000, inclusive of installation charges of Sh 7,000. Calculate: (a) the balance of plant at cost at 31 March 2021 was Sh (b) the total (accumulated) provision for depreciation of plant at 31 March 2021 was Sh . This comprised: - Depreciation for year to 31 March 2017 of Sh - Depreciation for year to 31 March 2018 of Sh - Depreciation for year to 31 March 2019 of Sh - Depreciation for year to 31 March 2020 of Sh (c) the (profit/loss) on disposal of the plant was Sh . This is because the book value of the plant at the date of sale was Sh .