QUESTION ONE Mali Mingi is the sole distribution agent of roofing sheets in Mombasa. Under an agreement with the manufacturers, Mabati Ltd., Mali Mingi purchases roofing sheets from Mabati Ltd. at a trade discount of 20% of the list price. Every year in the month of May, Mali Mingi receives an agency commission of 1% of his purchases for previous year ended 31 March. Mali Mingi has been making a gross profit of 40% on all sales. In a burglary that occurred in January 2019, Mali Mingi lost stock costing Sh.480,000 as well as the bulk of his accounting records. After thorough investigation, the accountant has obtained the following information relating to the year ended 31 March 2019: 1. Assets and liabilities as at 31 March 2018 were: Sh. Buildings at cost 1,200,000 Provision for depreciation on buildings 720,000 Motor vehicles at cost 600,000 Provision for depreciation on motor vehicles 240,000 Stock at cost 384,000 Trade debtors (sales) 756,000 Prepayment (Trade expenses) 14,400 Agency commission receivable 36,000 Balance at bank and cash in hand 517,200 Trade creditors 504,000 Accrued motor vehicle expenses 27,600 2. Mali Mingi has been notified that he will receive an agency commission of SH. 52,800 on 1 May 2019. Commissions are paid directly to the bank. 3. Stock, at cost, at 31 March 2019 was valued at Sh.360,000 more than the value as at 31 March 2018. In October 2018, stock worth Sh.120,000 was scrapped as worthless. 4. Other details relating to the period up to 31 March 2019 are as follows: 4. Other details relating to the period up to 31 March 2019 a as follows: Sh. Discounts allowed 194,400 Discounts received 144,000 Prepaid trade expenses 9,600 Motor vehicle expenses 842,400 5. Balances as at 31 March 2019: Sh. Trade creditors at list prices 1,140,000 Trade debtors 804,000 6. Depreciation is provided at the following rates: Buildings 5% per annum on cost Motor vehicles 20% per annum on cost 7. In addition to purchases, the following payments were ma through the bank: Sh. Motor vehicle expenses 806,400 Drawings 516,000 Trade expenses 883,200 8. All receipts pass through the bank and Mali Mingi is insured against burglary. 9. The agency commission due as at 31 March 2018, w received during the year through the bank. 10. All purchases and sales are on credit. Required: (a) Trading and profit and loss accounts for the year ended 31 March 2019. (15 marks) (b) Balance sheet as at 31 March 2019. (10 marks)