Description
Legal Practice and Management
- AB & C passed their exams in 2012 at the Kenya School of Law and subsequently applied and they were admitted to the roll of advocates on 5 July 2012. On 2nd September, 2012 they agreed to start a partnership AB &C Advocates. They agreed to share profits and losses in the ration 5:3:2 respectively.
The trial balance as at 30 September, 2013 was as follows:
| Shs. | Shs. | ||
| Sales | 2,105,000 | ||
| Return Inwards | 68,000 | ||
| Purchases | 1,371,900 | ||
| Carriage Inwards | 15,000 | ||
| Stock as at 30 September, 2012 | 428,500 | ||
| Discounts Allowed | 1,100 | ||
| Salaries and Wages | 182,960 | ||
| Bad Debts | 12,340 | ||
| Provision for bad debts 30 September, 2012 | 8,000 | ||
| General Expenses | 9,450 | ||
| Rent and Rates | 24,500 | ||
| Motor Vehicle Expenses | 39,400 | ||
| Motor Vehicle at cost | 125,000 | ||
| Equipment at Cost
Provision for Depreciation: |
84,000 | ||
| Motor Vehicle | 42,000 | ||
| Equipment | 27,000 | ||
| Debtors | 372,440 | ||
| Creditors | 243,560 | ||
| Cash at Bank Drawings | 6,000
126,100 84,170 |
||
| Current Accounts | c | 62,160
1,530 |
13,900 |
| Capital Accounts | c | 20,740
300,000 160,000 |
|
| c | 120,000 | ||
The following notes are relevant as at 30 September, 2013
Stock at 30 September, 2013 Kshs. 510,600
- Rates q kA r900
- Increase in provision for bad debts Ksh.8,700
- Salaries B 12,000 & C 7,000. Not yet recorded
- Interest on drawings: A:Kshs.1700, B:Kshs.1100, C:Kshs.1,200 (vi) Interest on capital at 10%
(vii) Depreciate motor vehicle Shs.25,000, office equipment Shs. 16,800 Required:
Draw up a set of final accounts for the year ended 30 September, 2013.
(15 Marks)
ATP 106 Legal Practice and Management Nov_2014_1-1-2
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