Question 2 The following trial balance was extracted from the ledger of Tasha Ltd for the financial year ended 31 December 2011: Particulars Notes Dr Cr Shs '000' She '000' Ordinary share capital 50,000 Land at cost 24,000 Motor vehicle at cost 1 14,800 Furniture at cost 1 5,600 Accounts receivable 8 payable 32,800 17,000 Bank balance 15,800 Inventory, 1 January 2011 24,000 20% bank loan 25,000 Purchases and sales 96,000 131,600 Returns 1,200 5,400 Salaries 5 24,000 General expenses 7,000 Bad debts 2 1,200 Provision for bad debts 3 4,200 Commission received 13,600 Discounts 2,400 5,000 Accumulated depreciation: Furniture 360 Motor vehicle 440 Retained earnings, 1 January 2011 13,680 Rent 6 10,000 Electricity 7,480 M M Notes: 1. The company charges depreciation on cost, at the rate of 10% on furniture and 20% on motorvehicle, per annum. 2. Bad debts of She 800,000 were written off on 30 December 2011 but have not yet been accounted for. 3. Provide for bad debts at the rate of 10% per annum. 4. Inventory at the 31 December 2011 was valued at Shs 29,400,000