Makau and Mutua are in a partnership dealing in solar panels. The following balances were extracted from the books of the partnership as at 1^st October 2020:

	Dr	Cr
	Sh.	Sh.
Motor vehicles at cost	1,800,000
Equipment at cost	1,500,000
Provision for depreciation:
Motor vehicles		200,000
Equipment		300,000
Prepayments: Advertising	50,000
Insurance	100,000
Accruals: Electricity		75,000
Rent and Rates		25,000
Cash at bank	250,000
Inventory	625,000
Trade receivables	1,000,000
Trade payables		375,000
Capital accounts: Makau		2,000,000
Mutua		1,250,000
Current accounts: Makau		575,000
Mutua		525,000
	5,325,000	5,325,000

The accountant of the firm made the following payments during the financial year ended 30^th September 2021.

	Sh
Motor vehicle running expenses	112,500
Insurance	337,500
Electricity	125,000
Carriage inwards	175,000
Advertising	137,500
Rent and rates	300,000
Office provisions	33,150
Equipment	320,000
Purchases	500,000

Additional Information:

1. Inventory as at 30^th September 2021 was valued at Sh. 225,000
2. The firm owed Sh. 1,250,000 to J Masinde a supplier of solar panels as at 30^th September 2021
3. Discount received from creditors amounted to Sh. 50,000
4. Receipts from customers amounted to Sh. 5,231,800
5. Customers owed the firm Sh. 1,375,000 as at 30^th September 2021
6. Accrued electricity expenses as at 30^th September 2021 amounted to Sh. 56,250
7. During the year bad debts amounting to Sh. 150,000 were written off.
8. Interest on capital balance is allowed at 10% per annum.
9. Profits are to be shared in the ratio of 2:1 between Makau and Mutua respectively.
10. Depreciation is to be provided as follows:

Asset	Rate Per Annum
Motor vehicle	25% on reducing balance method
Equipment	20% on straight line

1. Cash drawings during the year were Sh 1,500,000 and Sh 750,000 for Makau and Mutua respectively.

Required:

1. Income statement for the year ended 30^th September 2021 (8 Marks)
2. Partners current accounts (4 Marks)
3. Statement of financial position as at 30^th September 2021 (8 Marks)