4. a) Kanga Ltd leased a quarry form Mombasa Ltd at a minimum rent of Sh. 170,000 per annum on which royalty fees was payable at Sh. 10,000 per tonne. There was a stipulation that short workings could only be reoccupied in the first three years of the lease. The output in the first four years of the lease were: -4 tonnes, 8 tonnes, 20 tonnes and 17 tonnes respectively. Required; amounts paid. ii) Amounts reoccupied and, iii) Amounts written off for the four years. (8 Marks) b) January 1: Goods in hand at the branch, valued at selling price 3,000 January 31: Goods sent form from the Head Office to the branch, valued at selling price 3,460 January 31: Goods sold to consumers for cash in the month of January 3,280 Required; Calculate the value of closing stock at the branch at 31" January (6 Marks) c) What flaws exist under Historical cost accounting that can encourage setting of an accounting standard for firms operating under inflationary conditions. (6 Marks) il