The following was the partnership trial balance as at 30 April 2001: Fixed capital accounts Rotich Sinei Current accounts Rotich Sh Sh. 750,000 500,000 400,000 Sinei 300,000 Leasehold premises (purchased 1 May 2000) 2,250,000 Purchases 4,100,000 Motor vehicle (cost) 1,600,000 Balance at bank 820,000 Salaries (including partners' drawings) 1,300,000 Stocks: 30 April 2000 1,200,000 Furniture and fittings (cost) 300,000 Debtors 225,000 Accountancy and audit fees 105,000 Wages Rent, rates and electricity 550,000 310,000 General expenses (Sh.352,400 for the six months to 31 October 2000) Cash introduced - Tonui 660,000 Sh. 1,250,000 Sh. Sales (Sh.3,500,000 to 31 October 2000) 8,750,000 Accumulated depreciation: 1 May 2000 Motor vehicle 300,000 Furniture and fittings 100,000 Creditors 1.070,000 Page 9 of 13 13,420,000 13,420,000 Additional information: 1. On 1 November 2000 Tonui was admitted as a partner and from that date profits and losses were to be shared on the ratio 2:2:1. For the purposes of this admission, the value of goodwill was agreed at Sh.3, 000,000. No account for goodwill was to be maintained in the books, adjusting entries for transactions between the partners being made in their current accounts. On that date, Tonui introduced Sh.1,250,000 more into the firm of which Sh.375,000 comprised his fixed capital and the balance was credited to his current account. Interest on fixed capitals was still to be allowed at the rate of 10% per annum after Tonui's admission. In addition, after Tonui's admission, no interest was to be charged or allowed on current accounts. Any apportionment of gross profit was to be made on the basis of sales. Expenses, unless otherwise indicated were to be apportioned on a time basis. A charge was to be made from depreciation on motor vehicle and furniture and fittings at 20% and 10% per annum respectively, calculated on cost. On 30 April, the stock was valued at Sh.1,275,000. Salaries included the following partners' drawings: Rotich Sh.150,000, Sinei Sh. 120,000 and Tonui Sh. 62,500 7. A difference in the books of Sh.48,000 had been written off at 30 April 2001 to general expenses, which was later found to be due to the following clerical errors: Sales returns of Sh. 32,000 had been debited to sales returns but had not been posted to the account of the customer concerned; The purchases jotirnal had been under cast by Sh.80,000. 8. Doubtful debts (for which full provision was required) amounted to Sh.30,000 and Sh.40,000 as at 31 October 2000 and 30 April 2001 respectively. 9. On 30 April 2001, rates and rent paid in advance amounted to Sh.50,000 and a provision of Sh.15,000 for electricity consumed was required. Page 10 of 13 Required: a) Trading and profit and loss account for the year ended 30 April 2001. b) Partners' current accounts for the year ended 30 April 2001. c) Balance sheet as at 30 April 2001. (6 marks) (4 marks) (5 marks) (Total: 20 marks)