8. 9 3. 4. QUESTION FIVE Mases Rono set up his restaurant business on 1 April 201 The following information relates to this busine On 1 April 2018, Rono opened a business bank 2 3. nt and deposited Sh.500,000 of his own personal savings into from his house. The cash was retained in the businessesh box. year, Mr. Rono paid this by cheque through the business account the account. He also introduced into the business amounting to Sh.70,000 and equipment worth Sh.150,000 On 1 April 2018, Rono signed a lease agreement for the premises which required that he pays Sh. 120,000 in rent per During the year, the premises were repainted marsh7.500 which was paid in cash from Rone's private funds. bought fumiture at a cost of Sh.120.000 which was paid by cheque through the business account. In addition, Rone bought a safe at Sh 30,000 which was also paid for by aeque through the business account. The paint was bought by Rono at Sh.35.000 which was paid by cheque through the business account. Rono also account, Rono was to pay interest of 10% per anion the loan. The term of the loan is three years. The loan On April 2018. Rone borrowed Sh.90,000 from friend and the funds were deposited into the business bank cash sales amounted to Sh.100,000 per week excs for the five weeks of December where due to the Christmas Most of Rono's sales were in cash, Cash is deposited into the business bank accouns every week. During the year. amounting to Sh.780,000 in relation to the corpurate clients during the year and had received and lodged into the Rono also has corporate clients that are invoiced a hosting their events in the restaurant. Rono raised invoices business bank account Sh.620,000 by year end. Rone maintains a file where all records are held. A summary of this file is as follows interest was still unpaid as at 31 March 2019. festivities, weekly sales increased by 80% of cash Assume that one year has 32 weeks Javentory purchased on credit during the year amounted to Sh.2,600,000 of which Rono estimated that there was Sh.235,000 of inventory at the year end. The amount owed to suppliers was Sh.300.000 m the year end. Electricity bills averaged Sh.26.000 per month and were paid in cash. The bill for March 2019 was paid in April 2019 Salaries and wages for the year amounted to 20% of cash sales. These were paid in cash. Consumables used amounted to Sh. 120.000 during the year. They were paid for in cash Miscellaneous expenses for the year paid for in cash amounted to Sh.43.000. Insurance expenses for the year amounted to Sh.90,000. These were paid for by cheque through the business bank account. Rono feels that it is appropriate to depreciate all the assets of the business at the rate of 15% per annum on cost regardless of the date of purchase. The safe is not to be depreciated. During the year, Rono withdrew Sh.20.000 per month in cash for his private use. He also took Sh.20.000 worth of inventory out of the business to host his daughter's birthday party. Required: (A) (b) Income statement for the year ended 31 March 2019. Statement of financial position as at 31 March 2019. (12 marks) (8 mark-