The following trial balance was extracted from the books of D. Fama, a farmer, on 31/12/2019.

sh. sh.

Land and buildings (cost sh.600,000) 520,000

Machinery (cost sh.120,000) 105,000

Stocks 1/1/2019

Livestock 96,000

Grain seeds 200

Fertilizer 1,600

Feedstuffs 3,600

Purchases

Livestock 44,000

Grain seeds 6,800

Fertiliser 7,250

Feedstuffs 16,900

Sale of cattle 235,000

Receipts from the Creamery for milk 126,300

Sale of grain 82,400

Electricity 12,920

Veterinary fees and medicines 1,900

10% Loan from Bank (1/1/2019) 90,000

Drawings of cash 8,000

Loan interest 4,500

Farm wages 56,400

Bank 106,370

Capital _______ 245,000

885,070 885,070

The following information is also available on 31/12/2019:

1. Closing Stocks

Livestock sh.74,000

Fertilizer sh.900

Feedstuffs sh.2,600

2. Value of milk used by the family sh.1,250.

3. Farm wages and fertilizers should be allocated half to ‘Cattle and Milk’ and half to ‘Grain’.

4. Provide for Loan interest due.

5. Depreciation is to be provided as follows: Buildings 3% of cost and Machinery 20% of cost.

You are required to prepare:

(a) Enterprise analysis accounts for ‘Cattle and Milk’ and ‘Grain’ for year ended 31/12/2019. (10 marks)

(b) General profit and loss account for year ended 31/12/2019. (5 marks)

(c) Statement of financial position as at 31/12/2019.