The following list of balances as at 30 September 2017 has been extracted from the books of Brick and Stone, trading in partnership, sharing the balance of profits and losses in the proportions 3:2 respectively.

	Kshs.
Printing, stationery and postages	3,500
Sales	322,100
Inventory in hand at 1 October 2016	23,000
Purchases	208,200
Rent and rates	10,300
Heat and light	8,700
Staff salaries	36,100
Telephone charges	2,900
Motor vehicle running costs	5,620
Discounts allowable	950
Discounts receivable	370
Sales returns	2,100
Purchases returns	6,100
Carriage inwards	1,700
Carriage outwards	2,400
Fixtures and fittings: at cost	26,000
Depreciation	11,200
Motor vehicles: at cost	46,000
Provision for depreciation	25,000
Provision for doubtful debts	300
Drawings: Brick	24,000
Stone	11,000
Current Account balances at 1 October 2016:
Brick	3,600
Stone	2,400
Capital account balances at 1 October 2016:
Brick	33,000
Stone	17,000
Receivables	9,300
Payables	8,400
Balance at bank	7,700

Additional information:

Kshs.10,000 is to be transferred from Bricks capital account to a newly opened Brick Loan Account on 1 July 2017. Interest at 10 per cent per annum on the loan is to be credited to Brick.

Stone is to be credited with a salary at the rate of Kshs.12,000 per annum from 1 April 2017.

Inventory in hand at 30 September 2017 has been valued at cost at Kshs.32,000.

Telephone charges accrued due at 30 September 2017 amounted to Kshs.400 and rent of Kshs.600 prepaid at that date.

During the year ended 30 September 2017 Stone has taken goods costing Kshs.1,000 for his own use.

Depreciation is to be provided at the following annual rates on the straight line basis:

Fixtures and fittings 10%

Motor Vehicles 20%

Required:

Prepare income statement for the year ended 30 September 2017. (13 marks)

Prepare statement of financial position as at 30 September 2017 which should include summaries of the partners capital and current accounts for the year ended on that date. (17 marks)