Example The trial balance of Upendo Enterprises at 31st December 2014 showed the following: Dr (Tshs.)...

Transcribed Image Text:

Example The trial balance of Upendo Enterprises at 31st December 2014 showed the following: Dr (Tshs.) Cr (Tshs.) 160,000 150,000 5,400,000 2,350,000 Discounts Selling and Distribution expenses Cash and Bank Cost of sales Administration expenses Buildings Motor vehicles Sales Returns Accumulated Depreciation: Buildings Accumulated Depreciation: Motor vehicles Drawings Finance expenses Capital Debtors/Creditors Stock Additional Information: (i) (ii) 30,100,000 3,300,000 29,800,000 18,600,000 60,000 180,000 2,130,000 1,990,000 1,450,000 95,510,000 42,900,000 1,100,000 3,600,000 REQUIRED: Prepare: (a) The Statement of Income for the year ended 31st December 2014. (b) The Statement of Financial Position as at 31st December 2014. 45,860,000 1,890,000 95,510,000 Depreciation on building is 2% on book value while depreciation on motor vehicle is 5% on cost. Depreciation is to be charged to administration expenses. Prepaid selling and distribution expense are Tshs. 20,000 while accrued finance charges are Tshs. 30,000. Example The trial balance of Upendo Enterprises at 31st December 2014 showed the following: Dr (Tshs.) Cr (Tshs.) 160,000 150,000 5,400,000 2,350,000 Discounts Selling and Distribution expenses Cash and Bank Cost of sales Administration expenses Buildings Motor vehicles Sales Returns Accumulated Depreciation: Buildings Accumulated Depreciation: Motor vehicles Drawings Finance expenses Capital Debtors/Creditors Stock Additional Information: (i) (ii) 30,100,000 3,300,000 29,800,000 18,600,000 60,000 180,000 2,130,000 1,990,000 1,450,000 95,510,000 42,900,000 1,100,000 3,600,000 REQUIRED: Prepare: (a) The Statement of Income for the year ended 31st December 2014. (b) The Statement of Financial Position as at 31st December 2014. 45,860,000 1,890,000 95,510,000 Depreciation on building is 2% on book value while depreciation on motor vehicle is 5% on cost. Depreciation is to be charged to administration expenses. Prepaid selling and distribution expense are Tshs. 20,000 while accrued finance charges are Tshs. 30,000.

Answer rating: 100% (QA)

The image displays the trial balance of Upendo Enterprises as of December 31st 2014 along with additional information necessary for preparing financia... View the full answer