Please answer the following questions and show the working notes.

Ochieng and Otieno are in partnership sharing profits and losses equally. The following is their trial balance as at 30" June 2006: Dr, Sh. Cr. Sh Buildings (cost Sh. 80,000) 55,000 Fixture at 16,000 Provision for depreciation on fixtures 8,300 Debtors 21,243 Creditors 16,150 Cash at bank 5,677 Stock at 30" June 2005 46,979 Sales 128,650 Purchases 90,416 Carriage outwards 6.288 Discounts allowed 5,115 Loan from Oloo 129,100 Office expenses 7,416 Salaries 23,917 Bad debts 5,503 Provision for bad debts 5.400 Loan interest - Oloo 9.000 Capital - Ochieng 45,000 Capital - Otieno 39,500 Current account - Ochieng 13.106 Current account - Otieno 9.298 Drawings by Ochieng 12,400 Drawings by Otieno 8.650 TOTAL 394604 394604Prepare a trading, profit and loss and appropriation account for the year ended 30" June 2006 and a statement of financial position as at that date incorporating the following information: a. Stock at 30" June 2006 was Sh 61,341 b. Office expenses and Wages of Sh 2596 and Sh 5717 respectively are for next year. C. Depreciation is to be charged at 10% on reducing balance method on fixtures and Sh 750 on buildings. d. Provision for bad debts is to be reduced to Sh 4000 e. Not yet entered in the books is salary of Sh 1,000 to Ochieng f. Interest on drawings: Ochieng, Sh 5,180 and Otieno Sh 5,120 g. Interest on capital account balances is at 10% h. Freehold land was purchased during the year at Sh 80,900 vide a cheque. While the entry was passed in the cash at bank account, no other entry was made