Identify and explain instances when a capital statement may be required. (4 marks)

(b) Mr. Juma Jundo has not bee keeping proper books of account since the inception of the business in 1995. The following balances relate to Jundos business for the period 1995 to 2000.

	1995 Sh.	1996 Sh.	1997 Sh.	1998 Sh.	1999 Sh.	2000 Sh.
Leasehold Land Lorries (cost) Saloon cars (cost) Swimming pool Stocks Computers Bank account Business deposit account Treasury bills Investment debtors House mortgage Creditors Bank overdraft Interest on bank deposit Loss on sale of investments Gain on foreign exchange	15,000,000 5,000,000 2,000,000 800,000 1,200,000 500,000 400,000 2,200,000 3,000,000 200,000 - 340,000 20,000 10,000 150,000 50,000	15,000,000 7,000,000 2,000,000 800,000 2,300,000 500,000 300,000 2,200,000 3,000,000 150,000 - - 60,000 5,000 120,000 60,000	15,000,000 4,000,000 2,000,000 800,000 2,000,000 500,000 20,000 2,200,000 3,000,000 250,000 - - 80,000 8,000 - 40,000	15,000,000 3,000,000 2,000,000 800,000 1,800,000 400,000 20,000 2,200,000 4,500,000 300,000 7,000,000 400,000 120,000 7,000 - 30,000	15,000,000 6,000,000 2,000,000 800,000 1,800,000 400,000 20,000 2,200,000 4,000,000 280,000 7,000,000 - 160,000 6,000 200,000 20,000	15,000,000 6,000,000 2,000,000 800,000 1,400,000 400,000 20,000 2,200,000 3,000,000 520,000 7,000,000 - 200,000 3,000 160,000 10,000