ASSIGNMENT TWO QUESTION At 31st March, 2023, AB Ltd, had an Authorised Capital of K35,000 divided into 10,000 7.5% non- cumulative p per share being due on 30th June, 1964. per share paid, the remaining K0.125eference shares of K1 each of which 5,000 Shares have been issued and fully paid and 50,000 Ordinary shares of K0.50 each, of which 48,000 had been issued and KO.375 per share paid, the remaining K0.125 per share being due on 30th June 2023. In addition to any balances arising from the foregoing, the private ledger contained balances at 31st march, 2023 as follows: Stock on Hand at 1st April, 2022 Cash in Hand Bank Overdraft Purchases of materials Sales Returns from customers Returns to Suppliers Productive Wages K 14,200 50 4,060 67,280 97,650 420 240 16,750 Net Cost of Tools used 476 Office Salaries 2,270 Sales Transport Costs 1,320 Rent Rates 486 Insurance General Expenses Cash Discount Allowed 480 286 360 Cash Discounts Received 240 Bad Debts Provision !st April, 2022 220 Interest on Bank Overdraft 160 Freehold Land and Buildings, at Cost 10,500 Machinery at Cost 16,350 Trade Debtors 6,748 Trade Creditors 6,723 Goodwill at Cost 4,600 Accumulated provision for Depreciation of Machinery to 1st April, 2022 1,750 Loan to a Director 2,600 Directors' Remuneration 4,750 Undistributed Profits at 31st March, 2022 12,500 Reserve of Capital Profits 6,000 Preference Dividend for half year to 30th September, 2023 (less tax) 2,297 REQUIRED: Prepare a Trading and Profit and Loss Account for the year to 31st March 2023, and a Balance Sheet at that date after taking into account the following:- (1) A reserve for future taxation of K1,700. (2) The dividend due on the preference shares for the half year to 31st March, 2023 (3) Additional depreciation of machinery of K500. (4) A total provision for Bad Debts of K420. (5) Insurance paid in advance of K60. (6) Stock of Materials and Finished Goods at 31st March, 2023 K15620.