The book keeper of Bidii Ltd. prepared the following trial balance as at 31 December 2003: Share capital Share premium Retained profits as at 1 January 2003 10% debentures Stock (1 January 2003) Motor vehicles Provision for depreciation as at 1 January 2003 - motor vehicles Machinery Provision for depreciation as at 1 January 2003 - machinery Buildings at cost Sales Purchases. Discounts. Returns Carriage General expenses Advertising Creditors Debtors Provision for doubtful debts (1 January 2003) Debenture interest Cash at bank 2. (b) Discounts received Returns outwards Carriage outwards Sh. 1,000,000 1,000,000 1,000,000 Sh.'000 The following items are already included in general expenses: Rates for the 12 months to 31 March 2004, Sh.4,000,000 3. Accountancy fees of Sh.1,000,000 should be provided for Required: (a) 200,000 100,000 120,000 230,000 350,000 2,000 2,000 2,000 200,000 10,000 Balance sheet as at 31 December 2003 (8 marks) 200,000 5,000 1.421.000 Additional information: 1. In an effort to simplify the accounting process, the book keeper posted both discounts received and discounts allowed to the discounts account. He has also posted both returns inwards and returns outwards to the returns accounts, and both carriage inwards and carriage outwards to the carriage account. Discounts received, returns outwards and carriage outwards were as follows: Sh.'000 5. Dividends of Sh.10,000,000 have been proposed by the board of directors. 6. Stock as at 31 December 2003 is valued at Sh.180,000,000 100,000 50,000 100,000 100,000 60,000 50,000 750,000 200,000 6,000 Insurance for the 12 months to 31 December 2003 amounted to Sh.2,000,000. Half of this amount relates to the managing director's private expenses. 5,000 1.421,000 4. A debtor for Sh.20,000,000 has been declared bankrupt. The provision for doubtful debts is to be made at 5% of the debtors. 7. Depreciation of Sh.20,000,000 is to be provided on the motor vehicles and Sh.10,000,000 on the machinery. The buildings are to be revalued upwards by Sh.30,000,000 Trading and profit and loss and appropriation accounts for the year ended 31 December 2003. (12 marks)