The following balances were extracted from the books of Upendo Traders as at 31 December 2025: Dr. Cr. Sh.“000” Sh.“000” Premises 180,000 Furniture 90,000 Inventory (1 January 2025) 42,000 Purchases 240,000 Carriage inwards 8,000 Salaries and wages 54,000 Lighting and heating 12,000 General expenses 18,000 Trade receivables 60,000 Bank 27,000 Drawings 36,000 Capital 250,000 Sales 480,000 Trade payables 30,000 Discounts received ______ 7,000 767,000 767,000 Additional information: 1. Inventory as at 31 December 2025 was valued at Sh.36,000, 000 2. Salaries and wages accrued amounted to Sh.6,000, 000 3. Lighting and heating prepaid amounted to Sh.2,000, 000. 4. Depreciation on furniture is provided at 10% per annum. 5. Allowance for credit losses is to be maintained at 5% of trade receivables. 6. Included in general expenses is Sh.3,000,000 relating to the proprietor’s personal expenses. 7. Goods costing Sh.5,000, 000 were withdrawn by the proprietor for personal use but had not been recorded. 8. Carriage inwards includes Sh.1,200,000 relating to carriage on furniture purchased during the year. Required: (i) Statement of profit or loss for the year ended 31 December 2025. (8 marks) (ii) Statement of financial position as at 31 December 2025. (8 marks) (Total: 20 marks)

multipleQuestions newQuestion (i) Statement of profit or loss for the year ended 31 December 2025. newAnswer Upendo Traders Statement of Profit or Loss For the Year Ended 31 December 2025 (All figures in Sh. '000') Revenue Sales