a) Mutiso Muema started his business in Gikomba as a carpenter on 1 January 2020 and he has not kept proper books of account. He engages you to examine his records and prepare appropriate accounts. From your examination of the records and from interviews with Mr. Mwema you ascertain the following information: i) On starting the business on 1 January 2020, he put Sh.120,000 into a business bank account. On the same day, Mr. Mwema brought into the firm his pickup and reckoned that it was worth Sh. 66,000 then. He estimated that it will have another useful life of three years. ii) To increase his working capital he borrowed Sh.40,000 at 15% interest per annum on 1 April 2020 from his sister but no interest has yet been paid. iii) On 1 January 2020 Miss Wambua was employed as a typist/clerk at a salary of Sh.72,000 per annum. iv) Drawings were Sh.1,800 per week from the business account for private use during the year. v) He purchased timber worth Sh.196,000 out of which Sh.15,800 left in the workshop on 31 December 2020. He had also spent Sh.96,000 on some equipment at the commencement of the business which he estimates will last him five years. vi) Electricity bills received up to 31 October 2020 came to Sh.24,000. Motor vehicle expenses were Sh.18, 200 while general expenses amounted to Sh.27,000 for the year. The insurance premium for the year 31 March 2021 was Sh.16,000. All these expenses have been paid by cheque. vii) Rates for the year to 31 March 2021 came to Sh.3,600 but they had not yet been paid. viii) Miss Wambua sent out invoices to customers for Sh. 617,800 but only Sh.508,000 had been received by 31 December 2020. Debts totaling Sh.1,700 were abandoned during the year as bad. Other customers for jobs too small to invoice have paid Sh.72,600 in cash for work done of which Sh.56,000 was banked. Mr. Mwema used Sh. 7,500 of the difference to pay for his family's food stuff, bought Kenya Charity Sweepstake tickets worth Sh.2,400 and Miss Wambua used the rest of general expenses, except for Sh.3,010 which was left over in the drawer in the office on 31 December 2020. ix) You agree with Mr. Mwema that he will pay you Sh. 5,500 for accountancy fee. Required: Prepare Profit and Loss Account for the year ended 31 December 2020 and a Balance Sheet as at that date.