QUESTION ONE The folowing balances have been extracted from the books of H Chanida td au at st December 2017 '000 120 000 40 000 Ordinary share capital (K500 shares) 5% preference share capital K100 shares Freehold land and buildings at cost Provision for depreciation-buildings Receivables Payables Cash at bank Inventory at 1t January 2017 Sales Discounts allowed Discounts received Purchases Carriage inwards Carriage outwards 10% debentures Debenture interest paid Administrative expenses Salaries (excluding directors) Preference dividend paid Profit and loss account balance 460 000 200 000 20 000 4 000 10 000 20 000 160 000 800 400 98 000 2 000 1 600 100000 10 000 8 000 8 000 2 000 16 000