Mende, Nyuki and Inzi were trading as partners and the following trial balance was prepared for the.

Mende, Nyuki and Inzi were trading as partners and the following trial balance was prepared for the

year at 31st May 2012: Kshs.000 Kshs. 000

Capital accounts:

Mende 3,100

Nyuki 1,500

Inzi 600

Drawings

Mende 500

Nyuki 115

Inzi 60

Salary of partners

Mende 300

Inzi 100

Purchases 4,750

Sales 10,800

Mende loan account 900

Provision for depreciation – plant & machinery 250

Plant and machinery 2,000

Loose tools at beginning of year 620

Land 900

Buildings 1,000

Wages 1,340

Creditors 2,470

Staff Salaries 2,750

Debtors 1,250

Trade expenses 250

Sales commission 78

Rates and insurance 250

Bills receivable 280

Bad debts expense 50

Telephone expenses 130

Carriage out 150

Stocks at beginning of year 4,750

Cash in hand 375

Bank overdraft 2,000

Furniture and fittings 400

Provision for depreciation –furniture & fittings 80

Heating and lighting 285

Printing and stationery 95

Investment income 1,000

Discount received 78 22,778 22,778

Notes:

a. Profit and losses are to be shared on the basis of 5:3:2 for Mende, Nyuki and Inzirespectively

b. Stocks net realizable value and cost at year end amounted to Kshs3,000,000 and Kshs.3,500,000 respectively loose tools amounted to 500,000

c. Trade expenses unpaid amounted to Kshs.155,000

d. Unpaid wages amounted to Kshs.100,000

e. Bad debts written off amounted to Kshs.50,000

f. Depreciation is to be provided at 2% on cost for buildings, 10% on reducing balance basis for plant and 20% on cost for office furniture

g. Interest on capital was agreed at 5%

h. Interest on drawings was set at 5%

i. Interest on loan was agreed at 6%

Required: prepare statements of comprehensive income and financial position on 31st May 2012