Bibi Maridadi owns and manages a small manufacturing business. The following balances have been extracted from her books of account at 31 January 1986: Capital at 1 February 1985 Accounts payable Dr Cr Sh Sh 171,120 86,000 Bank and cash balance Accounts receivable Drawings Administration expenses Advertising expenses Factory direct wages Factory indirect wages Factory power 5,400 92,000 60,000 150,360 12,000 60,000 24,000 36,000 Furniture and fittings (all offices) 18,400 Heat and light 16,000 Plant and equipment 276,800 Motor vehicle (used by salesmen) 144,000 Plant hire 4,000 Provision for bad debts 3,200 Provision for depreciation 1 February 1985: Furniture and fittings 9,200 Plant and equipment 138,400 Motor vehicle 24,000 Raw material purchases 228,000 Rent rates 20,000 Sales 829,440 Selling and distribution expenses 66,400 Inventories at cost, 1 February 1985: Raw materials 8,000 Work in progress 16,000 Finished goods 24,000 1.261.360 1.261.360 The following additional information is provided: (111) Accruals at 31 January 1986 were: Factory power Rent and rates Sh.1,600 Sh. 4,000 There was also prepayment of Sh. 800 for salesmen's motor vehicle insurance. Inventories at 31 January 1986, were valued at cost as follows: Raw materials Work in progress Finished goods Sh. 15,200 Sh. 30,400 Sh. 45,600 Depreciation is to be charged on plant and equipment, motor vehicle, furniture and fittings at the rates of 20%, 25% and 10% per annum respectively on cost. (iv) Expenditure on heat and light, and rent and rates is to be apportioned between the factory and office in the ratio of 9 to 1 and 3 to 2 respectively. (v) The provision for bad debts is to be made equal to 5% of accounts receivable at 31 January 1986. Required: Using the vertical method, prepare Bibi Maridadi's manufacturing, trading and profit and loss account for the year ended 31 January 1986 and a balance sheet as at that date. (22 marks)