QUESTION 4 Kaleji and Nsama have been in partnership, selling computers and related accessories. Their agreement provides that each of them is entitled to interest on capital of 5% per annum and is charged interest on drawings of 2% per annum. Their profit sharing ratio is 3:2 respectively. The firms trial balance as at 31 December, 2018, was as follows: Dr. Cr. K K Carriage Inwards 16,700 Returns Inwards 15,200 Salaries and wages 45,000 Office expenses 3,200 Rent and rates 3,800 Postage and stationery 2,650 Bad debts written off 4,500 Provision for bad debts (01.01.18) 780 Discounts received 250 Sales 350,000 Trade Creditors 38,400 Trade Debtors 48,500 Stock at 1 Jan 2018 65,400 Purchases 165,000 Motor Vehicles at cost 20,000 Office equipment at cost 18,000 Provision for depreciation at 1 Jan 2018: - Motor Vehicles 4,000 - Office equipment 3,600 Cash at bank 16,900 Drawings: - Kaleji 35,000 -Nsama 15,500 Current accounts: -Kaleji 6,240 -Nsama 2,920 Capital accounts: -Kaleji 45,000 -Nsama 30,000 478,270 478,270 Additional information (i) Rent and rates paid in advance K990 (ii) Arrears for postage and stationery are K360 (iii) The provision for bad debts is to be adjusted to K 500 (iv) With effect from 1 July 2017 partners were entitled to a salary per annum as follows: Kaleji, K36,000, Nsama K24,000 (v) Motor vehicles are to be depreciated at 20% per annum on a reducing balance basis, and Office equipment at 10% on a straight line basis. (vi) Stock at 31 December, 2018 was valued at K82,800. Required: (a) Prepare the Partnership Statement of Comprehensive Income. [8] (b) Prepare the Appropriation Account and Current Accounts for the Partnership for the year ended 31 March 2012 [4] (c) A statement of Financial Position as at 31 March 2012 [8] Question 5 The following trial balance is extracted from the books of F W Ltd as on 31 December 2022: Trial balance as on 31 December 2022 K K 10% preference share capital 200,000 Ordinary share capital 700,000 10% debentures (repayable 2026) 300,000 Goodwill at cost 255,000 Buildings at cost 1,050,000 Equipment at cost 120,000 Motor vehicles at cost 172,000 Provision for depreciation: buildings 1.1.2022 100,000 Provision for depreciation: equipment 1.1.2022 24,000 Provision for depreciation: motor vehicles 1.1.2022 51,600 Stock 1.1.2022 84,912 Sales 1,022,000 Purchases 439,100 Carriage inwards 6,200 Salaries and wages 192,400 Directors remuneration 123,000 Motor expenses 3,120 Business rates and insurances 8,690 General expenses 5,600 Debenture interest 15,000 Debtors 186,100 Creditors 113,700 Bank 8,390 General reserve 50,000 Share premium account 100,000 Interim ordinary dividend paid 35,000 Profit and loss account 31.12.2021 43,212 2,704,512 2,704,512 The following adjustments are needed: I. Stock at 31.12.2022 was K91,413. II. Depreciate buildings K10,000; motor vehicles K18,000; equipment K12,000. III. Accrue debenture interest K15,000. Provide for preference dividend K20,000 and final ordinary dividend of 10 per cent. IV. Transfer K10,000 to general reserve. V. Write off goodwill K30,000. VI. Authorised share capital is K200,000 in preference shares and K1 million in ordinary shares. VII. Provide for corporation tax K50,000. REQ: Prepare the Final Accounts for both Internal use and for Publication