The following balance were extracted from the books of Mutua Traders for the year ended 31^st Dec 2001 after having prepared a trading account

                                                Dr (sh)                         Cr(sh)

Gross profit                                                                 38,100

Stock (31^st Dec)                      80,200

Cash                                        105,060

Motor van                               603,000

Capital                                                                         653,560

Equipment                               200,600

Furniture                                 94,400

Creditors                                                                     74,300

Debtors                                   75,900

Discount received                                                       26,400

Salaries                                   12,400

Carriage outward                    14,400

Rent income                                                                12,600

Advertising                             22,200

Insurance                                 9,400

Bank overdraft                                                            412,600

                                                1,217,560                    1,217,560

Required:

i) Prepare a profit and a loss account for Fundi Traders for the year ended 31^st December 2001    

ii) Prepare a balance sheet as at 31^st December 2011                                                            

On 1^st January 2011 Mulei Traders had 180,000 cash in hand and a bank credit balance of sh 57,500. during the month the following transactions took place              (10mks)

3^rd       cash sales sh 21,800

4^th       A debtor settled his account of sh 90,000 by cheque

10^th     Paid salaries sh 40,000 in cash

12^th     Took cash sh 3500 to settle a personal debt

23^rd     Received a cheque shs 8460 from Nganda wholesalers after deducting 6% cash discount

24^th     Deposited sh 10,000 in the bank from office cash

25^th     Purchased stock worth sh 8950 on credit from Ngumo distributors

26^th     Cash sales banked directly sh 38,000

27^th     A cheque received on 4^th from debtor was dishonoured. The bank charged him sh 2500

29^th     Settled creditors account sh 6000 by cheque less 3% cash discount

31^st     Banked all cash except sh 40,000

Required:

Prepare a three column cash book dully balanced                                                                 (10mks)

Differences between public ltd companies and partnerships