You are to draw up THE Income Statement for the year ending 31 December 2012 and the Statement of Financial Position as at that date for the following trail balance of Partido Limited

	DR Ksh.	CR Ksh.
Bank	8,100
Debtors	321,219
Creditors		237,516
Stock at January 1. 2012	290,114
Buildings at Cost	800,000
Equipment at Cost	320,000
Profit & Loss account balance at January 1, 2012		136,204
General Reserve		120,000
Fixed Asset replacement reserve		20,000
Ordinary Share capital		700,000
10% Debenture		100,000
Purchases	810,613
Sales		1,606,086
Carriage inwards	2,390
Carriage outwards	13,410
Salaries	384,500
Business rates	14,800
Office expenses	9,100
Sundry expenses	2,360
Provision for depreciation at January 1,2012;
Buildings		80,000
Equipment		96,000
Directors remuneration	119,200
	3,095,806	3,095,806

Additional information at 31 December 2012

1. Stock 317,426/=
2. Business rates outstanding 1,700/= and office expenses outstanding 245/=
3. Dividend proposed is 15%.
4. Transfers to reserves; General 70,000/=, Fixed asset replacement 30,000/=
5. Depreciation on cost; Buildings 5%; Equipment 15%
6. Debenture interest for the year has not been paid.