Account Titles	Debit	Credit
Purchases and sales	412,800	704,000
Transport on purchases	7,600
Discounts	9,200	27,200
Wages and salaries	38,400
Advertising	13,600
Insurance	6,400
Transport on sales	31,200
Interest on 13% Bonds	5,200
Salesmen commission	16,400
Rent and rates	36,000
Electricity	18,800
Directors' Remuneration	40,000
Repairs and maintenance	4,400
Interim dividend at shs.100 a share paid 1.1.03	12,000
Furniture and fittings	61,600
Accum. Depreciation on furniture and fittings		33,200
Motor vehicles	28,800
Accum. Depreciation Motor vehicles		20,400
Debtors and Creditors	190,000	70,000
Goodwill at cost	128,000
Share capital shs 1,000 Ordinary shares		120,000
Stocks at 01.07.02	114,000
Retained profits		42,800
Share premium		60,000
Bank		16,800
13% Bonds, 2002/2003		80,000
Totals	1,174,400	1,174,400

Prepayments and Accurals at 30.06.03

	Prepayments	Accruals
Salaries	500	2,900
Insurance	1,600
Salesmen commission		2,000
Auditors Remuneration		5,200

b)It has been confirmed that shs. 5,000,000 from a debtor who has been declared bankrupt are irrecoverable and therefore should be written off as bad debts. The company decides to allow for doubtful debts at 2% of the remaining debtors.

c)Corporation tax is charged at 30% on profits

d)Depreciation is at 10% straight line for furniture and fittings, and 25% reducing balance for motor vehicles

e)Stock at 30.06.03 is valued at shs. 125,600,000

f)Transfer shs. 15,000,000 to Bonds Redemption Reserve.

g)A final dividend of shs. 200 per share is proposed

PREPARE THE FOLLOWING WITH THE INFORMATION ABOVE:

I. A statement of financial position as at 30.06.03(7marks)

ii.Statement of comprehensive income for the year ending 30.06.03(10 marks)