Q1:XY Limitedcommenced trading on 1 February with fully paid issued sharecapital of 500 000, Fixed Assets of 275 000 and Cash atBank of 225 000. By the end of April, the following transactionshad taken place: 1. Purchases on credit from suppliers amounted to572 500 of which 525 000 was raw materialsand 47 500 was for items classified as productionoverhead.2. Wages incurred for all staff were 675 000, representedby cash paid 500 000 and wage deductions of175 000 in respect of income tax etc.3. Payments were made by cheque for the followingoverhead costs: 4. Issues of raw materials were 180 000 to Department A,192 500 to Department B and 65 000 for productionoverhead items.5 Wages incurred were analyzed to functions as follows: 6. Production overhead absorbed in the period byDepartment A was 110 000 and by Department B120 000.7. The production facilities, when not in use, were patrolled byguards from a security firm and 26 000 was owing for thisservice. 39 000 was also owed to a firm of managementconsultants which advises on production procedures;invoices for these two services are to be entered into theaccounts.8. The cost of finished goods completed was:9. Sales on credit were 870 000 and the cost of thosesales was 700 000.10. Depreciation of productive plant and equipment was15 000.11 Cash received from debtors totaled 520 000.12 Payments to creditors were 150 000.You are required: (a) to open the ledger accounts at the commencement ofthe trading period.(b) Using integrated accounting, to record the transactionsfor the three months ended 30 April.(c) To prepare, in vertical format, for presentation tomanagement,(i) a profit statement for the period;(ii) the balance sheet at 30 April.