The Chief Accountant of KK Ltd has extracted the following trial balance as at $31$ October $2018.$

Sh$,000$ Sh$,000$

Authorized and issued capital $($shares of Sh$.20$ each fully $30,000$

paid$)350$

Share premium $3,500$

$10\%$ premium $2,000$

General reserve $2,850$

Profit and loss account $1$ November $20173,500$

Motor vehicles at cost $265$

Provision for depreciation $44,500$

Freehold property $1,375$

Trade debtors $460$

Trade creditor $95,650127,450$

Purchases and sales $3,478$

Stock in hand $1$ November $20171,540$

Furniture and fittings at cost $138$

Provision for depreciation $500$

Goodwill $385$

Rent receivable $2,285$

Salaries and wages $358$

General expenses $2,470$

Vehicles running expenses $124$

Bad debts $568$

Telephone and postage $269$

Water and electricity $289$

Rates and insurance $10,492$

Cash at bank $167,398167,398$

Notes:

$1.$ Credit sales amounting to Sh$\mathrm{.}165,000$ were made on $31$ October $2018$ but no entries were made in the books.

$2.$ Returns outwards amounting to Sh$\mathrm{.}128,000$ were dispatched on $31$ October $2018$ but no entries were made in the books.

$3.$ Closing stock was valued at Sh$\mathrm{.}4,398,000.$

$4.$ Accrued salaries and telephone bills amounted to Sh$\mathrm{.}134,000$ and Sh$\mathrm{.}55,000$ respectively.

$5.$ Rent for the month of October $2018$ amounting to Sh$\mathrm{.}35,000$ had not been received from the tenant.

$6.$ Provision for depreciation on furniture and fittings and the motor vehicles are $10\%$ and $20\%$ on cost respectively.

$7.$ Provision for bad and doubtful debts of $5\%$ on trade debtors should be made.

$8.$ Corporation tax should be provided at $35\%$ of the net profit before tax.

$9.$ The directors propose a dividend of $15\%$ on issued share capital and a transfer of Sh$\mathrm{.}2,500,000$ to the general reserve.

$10.$ The debenture interest has not yet been paid.

Required:

$1.$ Trading, profit and loss account for the year ended $31$ October $2018.(10$ Marks$)$

$2.$ Balance sheet as at $31$ October $2008.$