ANSWER ALL QUESTIONS QUESTION 1: (40 MARKS) Booksellers Limited prepared the following trial balance for the year ended 30 September 2018. Dr (Rs) Cr(Rs) Purchases 250,000 Revenue 662,000 Inventory at 1 October 2017 15,000 Sales returns 8,000 Return Outwards 10,000 400,000 Ordinary Shares of $1 each 400,000 $1 10% Preference shares 100,000 Discounts 2,000 5,000 Rent received 44,000 Retained earnings 46,000 Administrative expenses 90,000 Distribution costs 72,000 Preference dividend paid 8,000 Bad debts 4,000 Trade receivables 45,000 Trade payables 40,000 Property 730,000 Shop fittings 42,000 Motor Vehicle 176,000 Provision of depreciation of shop fittings 12,000 Provision of depreciation of Motor vehicles 46,000 Bank 196,000 15% Debentures 20,000 General reserve 15,000 Revaluation reserve 100,000 Share premium 185,000 Salaries 27,000 Interest paid 2,000 Ordinary dividend paid 18,000