Ochieng and Otieno are in partnership sharing profits and losses equally. The following is their trial...

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Ochieng and Otieno are in partnership sharing profits and losses equally. The following is their trial balance as at 30th June 2006: Buildings (cost Sh. 80,000) Fixture at Provision for depreciation on fixtures Debtors Creditors Cash at bank Stock at 30th June 2005 Sales Purchases Carriage outwards Discounts allowed Loan from Oloo Office expenses Salaries Bad debts Provision for bad debts Loan interest - Oloo Capital - Ochieng Capital Otieno Current account - Ochieng Current account - Otieno Drawings by Ochieng Drawings by Otieno TOTAL Dr, Sh. 55,000 16,000 21,243 5,677 46,979 90,416 6,288 5,115 7,416 23,917 5,503 9,000 12,400 8,650 394604 Cr. Sh 8,300 16,150 128,650 129,100 5,400 45,000 39,500 13,106 9,298 394604 Prepare a trading, profit and loss and appropriation account for the year ended 30th June 2006 and a statement of financial position as at that date incorporating the following information: a. b. C. d. e. f. g. h. Stock at 30th June 2006 was Sh 61,341 Office expenses and Wages of Sh 2596 and Sh 5717 respectively are for next year. Depreciation is to be charged at 10% on reducing balance method on fixtures and Sh 750 on buildings. Provision for bad debts is to be reduced to Sh 4000 Not yet entered in the books is salary of Sh 1,000 to Ochieng Interest on drawings: Ochieng, Sh 5,180 and Otieno Sh 5,120 Interest on capital account balances is at 10% Freehold land was purchased during the year at Sh 80,900 vide a cheque. While the entry was passed in the cash at bank account, no other entry was made. Ochieng and Otieno are in partnership sharing profits and losses equally. The following is their trial balance as at 30th June 2006: Buildings (cost Sh. 80,000) Fixture at Provision for depreciation on fixtures Debtors Creditors Cash at bank Stock at 30th June 2005 Sales Purchases Carriage outwards Discounts allowed Loan from Oloo Office expenses Salaries Bad debts Provision for bad debts Loan interest - Oloo Capital - Ochieng Capital Otieno Current account - Ochieng Current account - Otieno Drawings by Ochieng Drawings by Otieno TOTAL Dr, Sh. 55,000 16,000 21,243 5,677 46,979 90,416 6,288 5,115 7,416 23,917 5,503 9,000 12,400 8,650 394604 Cr. Sh 8,300 16,150 128,650 129,100 5,400 45,000 39,500 13,106 9,298 394604 Prepare a trading, profit and loss and appropriation account for the year ended 30th June 2006 and a statement of financial position as at that date incorporating the following information: a. b. C. d. e. f. g. h. Stock at 30th June 2006 was Sh 61,341 Office expenses and Wages of Sh 2596 and Sh 5717 respectively are for next year. Depreciation is to be charged at 10% on reducing balance method on fixtures and Sh 750 on buildings. Provision for bad debts is to be reduced to Sh 4000 Not yet entered in the books is salary of Sh 1,000 to Ochieng Interest on drawings: Ochieng, Sh 5,180 and Otieno Sh 5,120 Interest on capital account balances is at 10% Freehold land was purchased during the year at Sh 80,900 vide a cheque. While the entry was passed in the cash at bank account, no other entry was made.

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