B Attempt any two questions in this section. 26 Chipo (a) The following trial balance was extracted from the books of Chipo on 31st December 2019. From it, and the note below it, prepare his trading and profit and loss account for the year ending 31 December 2019, and a statement of financial position as at that date: Details Sales Cr Dr 190,615 Purchases 82,370 Discount Received 3,600 Inventory 1 January 2019 25,600 Carriage outwards 1,550 Carriage inwards 8,320 Returns inwards 5,500 Returns outwards 12,000 Salaries and wages 42,530 Motor expenses 6,650 Rent 30,000 Sundry expenses 12,020 Motor vehicles 100.400 Fixtures and fittings 60,000 Receivables 8,177 Payables 3,045 Cash at bank 38,760 Cash in hand 12,000 Drawings 20,500 Capital 245,117 Total 454,377 454,377 Notes (i) Closing Inventory amounted to K25,617. (ii) Depreciation is to be charged at rates of 10% on cost for Fixtures and Fittings and 25% on cost for Motor Vehicles. (iii) Bad debts of K800 are to be written-off. (25 Marks) 8 | Page