1. Paul and Kevin are in partnership sharing profits and losses equally. The following is their trial balance as at 31" December 2018. Dr Sh. 55,000 16.000 80.900 8,300 21,243 16,150 5,677 46,979 128,650 90,416 6,288 5,115 129,100 Buildings(cost sh.30.000) Fixtures at cost Freehold Land Provision for depreciation on fixtures Debtors Creditors Cash at bank Stock Sales Purchases Carriage outwards Discount allowed Loan Office expenses Salaries Bad debts Provision for bad debts Loan interest Capital accounts: Paul Kevin Current accounts: Paul Kevin Drawings: Paul Kevin TOTAL 7,416 23,917 5,503 5,400 9,000 45,000 39,500 13,106 9,298 12,400 8,650 394,604 394,604 Additional information: Stock as at 31 December was sh.61,341 Office expenses and wages of sh.2,596 and sh.5,717 respectively were prepaid Depreciation is to be charged at fixtures 10% on a reducing balance basis sh. 750 on buildings Provision for bad debts is to be reduced to sh.4,000 iv. V. Not yet entered in the books is salary of sh. 1,000 to Paul vi. Interest on drawings : Paul sh.sh.5.180 and Kevin sh.sh.5,120 vii. Interest on capital account balances is at 10% Required a) Income statement, appropriation account and current accounts. (10mrks) b) Statement of financial position.(10mrks)