4. The following balances were extracted from the tria balance of Takan ltd manufacturing company as at 31 Dec 2013 Ksh 000 1 January 2012: raw materials 8,000 Work in progress 3,500 Finished goods 3,500 31 December 2013 raw material 10,500 Work in progress 4,200 Finished goods 44,000 Wages 39,000 Factory salaries 25,000 Purchases of raw materials 87,000 Fuel and power 9,900 Direct expenses 1,400 Lubricants 3,000 Carriage inwards 2,000 Factory rent 7,200 Office rent 2,000 Depreciation on factory plant 4,200 Factory transport expenses 1,800 Insurance of factory building and plant 1,500 General factory expenses 3,300 Sales of finished goods 250,000 Advertising costs 2,000 Required; Manufacturing trading and profit and loss account. (20 Marks) 5. The following balance remained in the books of Ahadi ltd as at 30 April 2003 after the preparation of the trading account Sh Share capital authorized and issued 2,400,000 sh 20 ordinary share 48,000,000 800,000 85 sh 20 preference share16,000,000 Stock 30 April 2003 33,540,000 Account receivable and prepayments 10,880,000 Account payable and accruals 5,488,800 Balance at bank 3,118,400 10% debentures 6,400,000 General reserves 11,200,000 Bad debts 136,000 Gross profit for the year 32,603,200 Salaries and wages 11,280,000 Rates and insurance 564,000 Postage and telephone 248,000 Water and electricity 486,400 Debenture interest 320,000 Directors fees 1,000,000 General expenses 1,243,000 Motor vehicles (cost sh 11,640,000) 2,726,000 Office fittings and equipment (cost sh 17,856,000)10,976,000 Land and building at cost 52,880,000 Profit and loss account - 1 may 2002 9,700,800 Additional information a) A bill for sh 219,200 in respect of electricity for the period up to 30 April 2003 has not been accrued b) The amount of insurance includes a premium of sh 120,000 paid in January 2003 to cover the company for six months, February to July 2003. c) Office fittings and equipment are to be depreciated at 15% per annum on cost and motor vehicles at 20% per annum on cost. d) Provision is to be made for: Directors fees sh 2,000,000 Audit fee sh 480,000 the outstanding debenture interest e) The directors have recommended that: A sum of sh 4,800,000 be transferred to general reserves. The preference dividend be paid A 10% ordinary dividend be paid Required: a) Profit and loss and appropriate accounts for the year ended 30 April 2003. (12 Marks) b) Balance sheet as at 30 April 2003.