Please answer question one only.

Please see attachments.

OR LAWYERS ASSIGNMENT 201 3/2014 SEM2 . QUESTION ONE Xavier, Yvonne and Zablon are partners operating a business under the name XYZ. The trial balance for the partnership as at 31s' March 2017 was as follows: Capital accounts: Xavier Sh. "000" Sh. "000" Yvonne 3,000 Zablon 1,500 Current accounts: Xavier 2,500 Yvonne 90 40 Gross profit Zablon 20 Trade receivables and payables 3.086 Insurance 3,740 1,560 Staff salaries 187 Bank balance 960 Advertising 1,330 Inventory 430 850 Furniture and fittings (cost) 1,200 Carriage outwards 37 Motor vehicles (cost) 2,300 Provision for depreciation: Furniture and fittings 200 Motor vehicles 460 Drawings : Xavier 153 Yvonne 206 Zablon 179 Discounts 80 96 Rent and rates 360 Cash in hand 190 Depreciation expenses for motor vehicles 230 12.492 12.492 Additional information:1. Interest on capital balances is allowed at 8% per annum. 2. The advertising expense includes a payment of Sh. 270,000 which was to cover half a year to 3 1st May 2017. 3. Depreciation has been provided for motor vehicles at 10% on cost. However, depreciation on furniture and fittings is yet to be provided for at 20% on the book values. 4. Staff salaries outstanding as at 3 1st March 2017 were Sh. 50,000. balance ledgers: 5. The partnership had made the following transactions but not yet adjusted the relevant trial Payment of trade payables of Sh. 45,000 by cheque Sh. 25,000 in cash The accountant had banked Sh. 74,000 Payment of rent expense of Sh. 42,000 by cheque. 6.Xavier, Yvonne and Zablon were entitled to salaries of Sh. 180,000, Sh. 140,000 and Sh. 160,000 respectively. respectively. 7. Profits and losses are shared among Xavier, Yvonne and Zablon in the ratio of 3: 1:2 Required (a) Income statement for the year ended 31t March 2017 (10 marks) (b) Partners' current accounts as at 31s March 2017 (4 marks) (c) Statement of financial position as at 31s' March 2017 (6 marks) QUESTION TWO Discuss the following Advocates rules (i) Advocates (deposit interest) rules ( 5 marks) (ii) Advocates (accountant's certificate) rules