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The following balances were extracted from the general ledger of Bob, a sole trader, as at 31 March 2019:Sh

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The following balances were extracted from the general ledger of Bob, a sole trader, as at 31 March 2019:Sh. 

Bank overdraft

1,164,800

Cash in hand

49,140

Drawings

1,456,000

Furniture and fittings

1,176,000

Office equipment

1,848,000

Provision for depreciation as at 1 April 2018:

 

Furniture and fittings

235,200

Office equipment

462,000

Bad debts

36,400

Advertising

520,520

15% loan

1,400,000

 

 

Purchases

14,133,280

Sales

27,385,400

Interest expense

157,500

Returns inwards

218,400

Office expenses

760,760

Delivery expenses

1,164,800

Wages and salaries

8,010,520

Inventories as at 1 April 2018

3,657,080

Receivables

1,419,600

Payables

1,160,600

Capital

?

 

 

Additional information:

1. Inventories as at 31 March 2019 was valued at Sh.4,360,720.

2. Accrued wages as at 31 March 2019 amounted to Sh.251,160.

3. Receivables include an amount of Sh.39,200 which was not expected to be recovered.

 

4. Interest on loan is paid on a quarterly basis. Interest in respect of the quarter ended 31 March 2019 is outstanding.

5. Bob withdrew goods for his personal use amounting to Sh.252,000.

6. Depreciation is to be provided on the reducing balance basis as follows:

-  Furniture and fittings - 20% per annum

-  Office equipment - 25% per annum

7. Included in wages and salaries is Sh.75,600 paid to employees for repairing the roof of Bob's private residence.

Required:

(a) Income statement for the year ended 31 March 2019.                                                 (12 Marks)

Statement of financial position as at 31 March 2019.