1. 200 Chanda has been in business for many years. The following Trial balance has been extracted from his books of accounts as at 31" December, 2009. K K Bank Capital 33, 000 Cash 300 Drawings 6,000 Insurance 1. 300 Discount allowed 700 Discount received 1,000 Office expenses 11. 000 Fixtures and fitting at cost 5, 000 Fixtures and fittings: accumulated depreciation at 19 January 2009 2,000 Provision for bad and doubtful debts at 1 January 2009 500 Purchases 55,000 Salaries 20,000 Rent payable 4. 400 Sales 99,000 Stock at 1" January 2009 10.000 Creditors 4,000 Debtors 20.000 Electricity 1,000 Repairs 600 Advertising 3,000 139, 500 139, 500 3 Page Additional information 1. Stock at 31 December 2009 was valued at K15, 000. 2. Insurance cover worth K500 relates to the year 2010. 3. Depreciation charged on fixtures and fittings is 10% per annum using straight line method 4. The debtor's figure includes a bad debt to be written off worth K1, 000. 5. The provision for bad and doubtful debts is to be maintained at a level of 5% of outstanding debtors as at 31" December, 2009. 6. At 31" December, 2009, salaries worth K1, 000 were outstanding, 7. K700 worth of office expenses relate to purchases. 8. Water bills worth K400 were istakenly recorded in the rent payable account. Required a) Prepare Chanda's Trading, profit and loss account for the year ended 31 December 2009 (10 marks) b) Prepare Chanda's Balance sheet as at 31st December 2009 (8 marks) Total (20 Marks)