Question

The following trial balance was extracted from the books of Baite Traders as at 31st August 2015

	Dr	Cr
	Sh	Sh
Sales		350,000
Purchases	160,000
Cash at the bank	290,000
Returns inwards	5,000
Carriage inwards	20,000
Carriage outwards	14,000
Salaries and wages	10,000
Debtors	56,000
Creditors		90,000
Stock	35,000
Machinery	265,000
Rent		25,000
Discounts received		18,000
Light and heating	12,000
Buildings	240,000
Advertising	13,000
Drawings	30,000
Capital		667,000
	1,150,000	1,150,000

Additonal information:

1. Stock on 31st August 2015 was valued at Sh. 50,000
2. Prepare trading, profit and loss account for the year ended 31st August 2015 and a balance sheet as at that date.

Answer 1

Baite Traders Trading, Profit and Loss A/C For the period ended 31st August 20-5
	Sh	Sh		SH	Sh
Opening stock		35,000	Sales	350,000
Add: Purchases	160,000		Less: Return inwards	50,000	345,000
Carriage inwards	20,000	180,000
COGAFs		215,000
Less: Closing stock		50,000
Cos		165,000
G.P c/d		180,000
		345,000			345,000
Carriage outwards		14,000	G.P b/d		180,000
Sal/wages		10,000	Rent		25,000
Light & heat		12,000	Discount Received		18,000
Advert		13,000
NP c/d		174,000
		223,000			223,000

Biate Balance sheet As at 31st August 20-5
Assets Machinery Buildings	Sh 265,000 240,000	Capital + Liabilities Capital Less: Drawings	Sh  667,000 30,000	Sh
			637,000
Stock Bank Debtors	50,000 290,000 56,000	Add Net Profit Creditors	174,000	811,000 90,000
	901,000			901,000