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iliketurtures
iliketurtures
06.07.2021 • 
Business

hon siden TUI Question 1 Waruguru, a Cobbler (Shoe repairer) commenced business on Koinange Street on 1.1.2019, with Furniture and fittings shs 4800, and tools shs 2,800. For every pair of shoes polished, he was charging she 40 for ordinary shoes and shs 8b for executive shoes and boots. By the end of the year Waruguru made the following information available: 1) Number of shoes polished - 800 pairs of ordinary shoes and 500 pairs of boots. 2) Purchase of shoe polish shs 8,000 (There was no stock on 31" December, 2019). 3) Tips received from satisfied clients shs 3,000 4) Cach spent on ertertainment for self ard lunch ehe 18,000 5) Repairs to furniture and fittings shs 4,000 6) Commission received from selling newspapers and magazines shs 14,000 7) Cash remitted to spouse in Muranga for domestic use slis 13,000 8) Cash borrowed from a friend and used to purchase additional tools shs 10,000 (This money had not been repaid by 37 ºf December 2019). 9) Rent paid for his shanty in Mukuru estate shs 12,000. Clothes from Gikomba boutique for the children shs 4,000. Miscellaneous business expenses shs 800, On 31" December, he counted cash in hand and banked half of the money in Faulu finance. He spent the. remaining half with his friends on New Year's Eve (2020) He has instructed you to consider the following: a) He is to pay you accounting fees shs 4,000 upon completion of the work b) Provide depreciation at 10% on cost of Furniture and fittings; 20% depreciation on tools Required: Income statement of Waruguru for the year ending 31st December, 2019 Balance sheet as on 31 December, 2019 ST​

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