The following balances were extracted from the books of Ruth Sifa, who runs a car wash business. She has no knowledge of double entry book-keeping but records everything correctly.
The following balances relate to the year ended 30 September 2021:
| Sh "000" |
| Accounts payable | 200 |
| Cleaning income | 35,288 |
| Cash balance | 70 |
| Own salary | 21,200 |
| Equipment | 1,500 |
| Repair to customers' cars due to damage | 460 |
| Miscellaneous expenses | 220 |
| Owed by customers | 440 |
| Insurance | 700 |
| License fees paid | 1,050 |
| Stationery | 100 |
| Bank balance | 4,690 |
| Cleaning materials inventory (30 September 2021) | 6800 |
| Opening capital balance | 1,332 |
Ruth Sifa has not included the following items in her records:
1. As at 30 September 2021, bank charges amounted to Sh.90,000.
2. As at 30 September 2021, insurance amounting to Sh. 100,000 was pre-paid.
for doubtful debts of 50% of the amount owing as at 30 September 2021.
3. Amounts owed by customers might not easily be recovered. Ruth Sifa would like to make an allowance
4. License fees paid amounting to Sh.500,000 relates to the year ended 30 September 2020.
5. Equipment is to be depreciated over two years with no residual value 5.
Required:
(i). Statement of financial position as at 30 September 2021.
(ii). Statement of profit or loss for the year ended 30 September 2021.
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