QUESTION TWO K. Kimeu and M. Maingi are in partnership as manufactures of Tick Toys, Kimeu being responsible for the factory and Maingi for the sales. All completed toys are transferred from the factory to sales department at agreed price. Profits are shared on the following basis: Factory Sales Department Kimeu 80% 40% Maingi 20% 60% The following trial balance has been extracted from the books at 31 March 2020: Sh. Sh Freehold factory at cost 1,053,750 Factory plant, at cost 843,750 Provision for depreciation 1 April 2019 151,250 Delivery van, at cost 401,250 Provision for depreciation 1 April 2019 86,250 Stocks at 1 April 2019 Raw materials 100,700 Work-in-progress 85,000 Toys completed (30,000 at Sh.40) 1,200,000 Sales (45,500 toys) 2,775,500 Purchases of raw materials 716,250 Factory wages 375,500 Sales department wages 150,750 Expenses: Factory 301,750 Sales Department 250,500 Provision for doubtful debts 1 April 2019 40,000 Trade debtors and creditors 450,000 150,000 Bank overdraft 176,200 Capital accounts: Kimeu 1,400,000 Maingi 1,425,000 Drawings: Kimeu 150,000 Maingi 125,000 6,204,200 6,204,200 Additional information: 1 38,000 toys at Sh.45 each were manufactured and transferred to Sales Department during the year. Toys in stock at the end of the year were to be valued at Sh. 45 each. Stock of raw materials was Sh. 79.50 and work-in-progress was valued at prime cost of Sh. 126, 250 at 31 March 2020. i. Accrued expenses outstanding at 31 March 2020: Factory Sales Department Sh. Expenses 52,250 27,000 Factory wages in. Provision for depreciation is to be made as follows: . Factory plant 10% p.a. on cost . Delivery van 20% p.a. on cost v. The general provision for bad debts is to be maintained at 10% of the trade debtors. Required: Manufacturing, trading and profit and loss accounts for the year ended 31 March 1992 and a balance sheet as at that 20 marks)