Question 2 The following trial balance was extracted from the books of the Cadres and Sons on 30th April,2018. ZMK ZMK Sales 12,050, Returns outwards 313 Provision for depreciation Plant 738 Vehicles 375 Rent receivable 100 Trade payables 738 Debentures 250 Issued share capital ordinary A1 shares 3,125 Issued share capital preference shares 625 Share premium 350 Retained earnings 875 Inventory 825 Purchases 6,263 Returns inwards 350 Carriage inwards 13 Carriage outwards 125 Salesmens salaries 800 Wages and salaries 738 Land 100 Plant 1,562 Motor vehicles 1,125 Goodwill 1,062 Distribution costs 290 Administrative expenses 286 Directors remuneration 375 Trade receivables 3,875 Cash at bank and in hand 1,750 19,539 19,539 Note of information not taken into the trial balance data: (a) Provide for: (i) An audit fee of K38,000. (ii) Depreciation of plant at 20% straight-line. (iii) Depreciation of vehicles at 25% reducing balance. (iv) The goodwill suffered an impairment in the year of K17,700. (v) Income tax of K562,000. (vi) Debenture interest of K 25,000. (b) Closing inventory was valued at K112,500 at the lower of cost and net realisable value. (c) Administrative expenses were prepaid by K12,000. (d) Land was to be revalued by K50,000. Required: (a) Prepare a Profit and loss account (10 Marks) b) Prepare a balance sheet from the above information (10 Marks) (C) Prepare a cash flow statement from the above information (10 Marks).