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Mr owando started his business $($ Owando enterprises$)$ after retiring by depositing his pension $(40$M$)$ into a bank account and some $(2\mathrm{.}5$M$)$ remaining in cash. For the first month in business $($June $2023$ he transacted the following business:

$1.$ Acquired premises from Wahegulu ltd for $5$M which he renovated and customized for his business at cost of $3\mathrm{.}5$M$.$ He paid $3\mathrm{.}5$M by cheque and paid for the renovation by cheque $3\mathrm{.}5$M

$2.$ He acquired a transport van for cash at $2$M from Josi Singh motor dealers and paid $1\mathrm{.}5$M by cheque.

$3.$ He bought merchandise for sale at $2\mathrm{.}7$M from Kikwetu ltd and paid $1\mathrm{.}5$ by cheque

$4.$ He incurred some expense in registration and operations of the business which were paid by cheque as follows

a$.$ Legal expenses $0\mathrm{.}6$M

b$.$ Establishment expenses $0\mathrm{.}2$ M

c$.$ Consultancies $0\mathrm{.}3$M

d$.$ Transport and accommodation $0\mathrm{.}15$M

e$.$ Salaries and wages $0\mathrm{.}78$M

f$.$ Office expenses $1\mathrm{.}5$M

g$.$ Stationary and furniture $2\mathrm{.}8$M $($stationary was $0\mathrm{.}25$M the rest being furniture.

h$.$ Insurance premium $0,3$M

i$.$ He imported a new machine for stock taking which incurred the following cost

Ii purchase price $2$M

ii$.$ Pre$-$shipment inspection cost $0\mathrm{.}2$M

iii. Shipment charges $0\mathrm{.}1$M

vi Demurrage charges $0\mathrm{.}3$M

v$.$ inland transport $0\mathrm{.}05$M

iv$.$ Security and insurance $0\mathrm{.}25$M

Sales for the period amounted to weekly sales of $2$M for four weeks$$

Returns inwards and outwards were $0\mathrm{.}8$M and $0\mathrm{.}6$M respectively

Carriage inwards was $0\mathrm{.}3$M and outwards raised $0\mathrm{.}6$M

REQUIRED

$1.$ Determine the value of imported new machine $(4$ marks$)$

$2.$ Open the books of Owando Enterprises using the information provided $(8$ marks$)$

$3.$ Close the books of Owando enterprises and extract a trial balance $((8$ marks$)$

$4.$ From the trial balance extract a statement of income and $(8$ marks$)$

$5.$ A statement of financial position for the one month working period. $(8$ marks$)$

$6.$ Use an illustrative example to demonstrate to Mr$.$ Owando the difference between him as Mr$.$ Owando and the Business as far as the separate entity concept is concerned $(4$ marks$)$

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