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Ahmed, Babu and Chatu are partners sharing Profit and losses in the ratio 3:1:1 after interest on capital at 10% and salaries to Babu and

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Ahmed, Babu and Chatu are partners sharing Profit and losses in the ratio 3:1:1 after interest on capital at 10% and salaries to Babu and Chatu of 300,000 each. Interest on is as follows. Additional information 1. Stock as at 31/12/03 amount to Ksh. 1,000,000 2. Provision for bad and doubtful debt maintained at 10% of debtors 3. General expenses amounting Ksh. 200,000 were in arrears while rent and rates Ksh. 100,000 are in advance. 4. Depreciation is charged as follows: a) Land and buildings 10% on cost b) Plant and machinery 20% on reducing balance c) Motor vehicles 15% on cost Required: a) Trading, Profit and Loss account for year ended 31/12/03 b) Profit and Loss Appropriation account for year ended 31/12/03 c) Current accounts d) Balance sheet as at 31st December 2003

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