Question

The following is an extract of a trial balance from the books of Adan Traders as at 31 December 2018
                Adan Traders
      Trial balance as at 31 December 2018

Details	Dr.	Cr.
Premises	1,120,000
Debtors and creditors	55,000	37,300
Cash in hand	65,000
Cash at Bank	80,000
Discounts	15,000	2,400
Salaries and wages	27,000
Commission	16,600	9,000
Power and lighting	11,700
Furniture	49,000
Capital		1,301,800

Additional information:
Stock of goods on 31 December 2018       Ksh 25,000
Gross profit                                            Ksh 120,000
Required:

1. Prepare Adan Traders Profit and Loss Account for the period ended 31 December 2018 
2. Prepare a Balance Sheet as at 31 December 2018

Answer 1

1.                                ADAN TRADER'S
                            PROFIT AND LOSS ACCOUNT 
                    FOR THE PERIOD ENDED 31ST DEC. 2018

   Sh Discount allowed         1 5,000 Salaries and wages      27,000 Commission allowed    16,600 Power and lighting       11,700 Net profit                      61,100                                    131,400

   Sh. Gross profit b/d                  120,000 Discount received                  2,400 Commission received             9,000                                              131,400 Net profit                              61,100

2.                         ADAN TRADER'S
                           BALANCE SHEET
   Dr                    AS AT 31ST DEC. 2018                 Cr

   Sh Premises             1,120,000 Furniture                 49,000 Stock                      25,000 Debtors                   55,000 cash in hand            65,000 Cash at Bank           80,000                           1,394,000

   Sh. Capital          1,301,800 Net profit           61,100 Creditors            37,300                                                             1,400,200