Question ZAOU Limited has nominal capital of K150 000 divided into 100 000 6% Preference shares of K1 each and 50000 ordinary shares of K1 each, the former all being issued and fully paid. The ordinary shares which were issued at a premium of 25 ngwee per share were all allotted. 75 ngwee per share (including the premium) had been called and paid up with the exception of 25 ngwee per share on 600 shares, which was unpaid. On 31 March 2018, 500 5% Debentures of K100 each were issued at 97, and were fully subscribed and paid up. These Debentures were repayable at par by 25 equal half-yearly drawings, the first of which had taken place on 30 September 2018. No provision had been made in the company's books for interest due on these debentures on 30 September 2018. In addition to the balances arising out of the above, the following balances appeared in the company's books at 30 September 2018. K Office furniture at cost 800 Freehold premises at cost 96200 Corporation tax year to 30 September 2017 5500 Income tax 2400 Plant and machinery (less depreciation at 10% p.a. for the year. 28350 Preference dividend to 30 September 2018 6000 Office rent and rates 1627 Manufacturing account (credit balance) 43172 Stock, 30 September 2018 62835 Office salaries 5340 Provision for bad debts, 30 September 2017 600 Directors' emoluments paid 8250 Profit and loss account (credit balance) 30 September 2017 6352 Travellers' salaries, commission, and expenses Loose tools as valued at 30 September 2018 4863 1246 Cash in hand 124 Motor lorries running expenses 2372 Balance at bank 10777 Motor lorries 30 September 2017 3500 426 Insurance Sundry Creditors 8786 Sundry Debtors 22950 General Reserve 15000 Goodwill at cost 10000 You are required to prepare a Trial Balance ruled into Profit and Loss and Statement of financial position columns (I.e. P&L and Balance sheet running side by side), giving effect to the following:- 1) Surplus plant and machinery (the book value of which on 30 September 2017 was K1600) was sold for K1750 in September 2018, but the sale had not been recorded in the books. 2) Sundry Debtors, known to be bad, amounting to K750 were to be written off, and the provision for bad debts was to be increased to an amount equal to 5% of sundry debtors. 3) The Motor Lorries were valued at 30 September 2018, at K3100. 4) Directors' fees, K250, were owing. 5) Discount on Debentures is to be written off. 6) Provision for Corporation tax on the current year's profits, K4700.