i) Prepare trading, profit and loss account for the year ending 31st Dec 2022.

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Here is the solution to your question: i) Prepare trading, profit and loss account for the year ending 31st Dec 2022. Kieni Traders Trading, Profit and Loss Account For the year ended 31st December 2022 Details — Shs. — Shs.Sales — 474,000 Less: Sales Returns — (4,600) Net Sales — 469,400Less: Cost of Goods Sold Opening Stock — 460,000 Purchases — 280,000 Less: Purchase Returns — (7,000) Net Purchases — 273,000 Add: Carriage Inwards — 28,000 Cost of Goods Purchased — 301,000 Cost of Goods Available for Sale — 761,000 Less: Closing Stock — (54,000) Cost of Goods Sold — (707,000)Gross Loss — (237,600)Add: Other Income Rent Income — 23,000 Discount Received — 2,000 Total Other Income — 25,000Less: Operating Expenses General Expenses — 89,000 Discount Allowed — 3,000 Total Operating Expenses — (92,000)Net Loss — (304,600) ii) Calculate working capital. Step 1: Calculate total current assets. Current assets from the trial balance are Shs. 78,000. Closing stock is an additional current asset. Total Current Assets = Current Assets (from TB) + Closing Stock; Total Current Assets = 78,000 + 54,000; Total Current Assets = 132,000 Shs. Step 2: Identify current liabilities. Current liabilities from the trial balance are Shs. 53,000. Current Liabilities = 53,000 Shs. Step 3: Calculate working capital. Working Capital = Total Current Assets − Current Liabilities; Working Capital = 132,000 − 53,000; Working Capital = 79,000 Shs.

I) Prepare trading, profit and loss account for the year ending 31st Dec 2022.

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Step-by-step solution

Part i

Part ii· 3 steps
$\textbf{79,000 Shs.}$

Calculate total current assets.

Identify current liabilities.

Calculate working capital.

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