Edit question Question text Flag question The following balances were extracted from the books of Wamu Estate Agency Limited as 30 September 2019: Sh.'000 Ordinary shares of Sh.20 each. 1,000,000 8% preference shares Sh.20 each. 100,000 80,000 Share premium 100,000 6% loan 175,000 Accounts payable Accounts receivables Rental income 830,000 3,262,000 Estate commission 1,430,000 Buildings at cost 5,000,000 Provision for depreciation: Buildings 750,000 Fixtures and fittings at cost 1,340,000 Provision for depreciation: Furniture 256,000 Operation cost 101,000 Administration cost 123,000 Bad debts written off 24,000 Provision for doubtful debts 33,000 Retained profit 1 October 2018 1,462,000 Land at cost 1,500,000 Goodwill 160,000 Bank overdraft 430,000 Additional information: 1. Provide depreciation at the following rate: building at 2% using straight line method and Furniture at 10% on reducing balance method. 2. Accounts receivable balance includes Sh. 10,000 due from Musa who has now been declared bankrupt. In the circumstances, it has been decided to write the debt off as a bad debt. 3. The provision for doubtful debts as at 30 September 2019 is to be 5% of trade debtors.