The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018: Dr Cr

Stock DEC 31st 2017 23,680

Carriage outward 2,000

Carriage inwards 3,100

Returns 2050 3,220

Purchases and sales 118,740 186,000

Salaries and wages 38,620

Rent 3040

Insurance 780

Motor expenses 6,640

Office expenses 2160

Lighting and heating expenses 1,660

General expenses 3140

Premises 50,000

Motor vehicles 18,000

Fixtures and fittings 3,500

Debtors and creditors 38,960 17,310

Cash at bank 4820

Drawings 12,000

Capital 126,360

332,890 332,890

Additional information

i)Closing stock was valued at ksh 29,460 as at 30th June 2018

ii)Mr kalekeno took part of the stock amounting to ksh 3000 for personal use

iii)Salaries and wages amounting to ksh 8,000 were pre-paid and ksh 360 of motor expenses accrued

iv)Bad debts written off amounted to 860

v)Depreciation is to be provided for as follows:

Premises at 20%

Fixtures and fittings at 15%

 Motor vehicles at 25%

All of a above asset were depreciated at cost

a)The income statement for the year ended 30 th June 2018 ( 5marks)

b)The statement of financial position (5 Marks)