Meno and Allied Ltd manufactures false teeth and tooth filling that are used by dentist to replace and refill rotten and uprooted teeth. The following is the balance sheet as 31 Dec 20X8:

Particulars	Dr.	Cr.
Plant and machinery Motor vehicles Furniture and fittings Inventory 1 January 20X8 Raw materials Work in progress Finished goods Trade receivables Cash at Bank Cash in hand Ordinary share capital Sh.10 each Trade payables Sales General factory expenses Lubricants and fuels Direct expenses Carriage inwards of raw materials Direct wages Factory power Purchase of raw materials Purchases of finished goods Carriage outwards Retained revenue Rent and rates General expenses Accumulated depreciation 1.1.20X8 Plant and machinery Motor Vehicles Furniture and fittings Provision for doubtful debts Sales commission Staff welfare Travelling and transport Printing and stationery Discount allowed Salaries and wages Telephone, fax and internet Advertisements and promotions Bank charges Water and power Heat and light	Sh. m 5,600 2,500 1,200 2,350 1,250 3,500 8,600 4,500 1,100 2,570 1,240 2,540 1,200 2,580 1,670 18,000 500 2,300 1,500 3,520 1,800 1,150 700 850 860 3,500 750 1,350 2,000 980 3,850	Sh. m 14,000 5,400 53,120 9,500 2,450 1,000 240 300
	86,010	86,010

Additional information

1. Water and power, heat and light, and rent and rates are to be apportioned in the proportion factory to office 2:1

2. Salaries and wages prepaid is Sh.200m and printing and stationery accrued amounts Sh.400m

3. Depreciation on plant and machinery is 25% reducing, and depreciation on furniture and fittings 10% straight line

4. Depreciation on motor vehicle 20% straight line and apportioned to factory and office in the ratio of 3:1

5. Inventory as at 31 December 20X8: Sh.

Raw materials 5,200m

Work in progress 2,340m

Finished goods 6,350m

6. Provision for bad debts 5%.

7. Taxation rate at 30%

Required

a) Manufacturing account

b) Income Statement

c) The Statement of Financial position.