Question 1 XYZ Ltd. started a business on 1st of October 2016. The following is the trial balance at 30th of September 2017 100 marks] XYZ Ltd. Trial Balance at 30th of September 2017 Account Capital Cash Creditors Debtors Furniture at cost General expenses Insurance Purchases Sales Telephone Total 6,000 400 5,900 5,000 8,000 14,000 2,000 21,000 40,000 1,500 51,900 51,900 The following information was obtained after the trial balance had been prepared: 1. Stock at 30th of September 2017 was 3000 2. Furniture is to be depreciated at a rate of 15 per cent on cost. 3. At 30th of September 2017, XYZ Ltd. owed 500 for telephone expenses, and insurance had been prepaid by 200 Required a) Prepare XYZ Ltd. trading profit and loss account for the year to 30th of September 2017 40 Marks] b) Show XYZ Ltd. balance sheet as at 30h of September 2017 40 Marks] c Discuss why companies need profit and loss account and balance sheet. [20 Marks]