The question asks to prepare a Trading Profit and Loss account and a Balance Sheet. The "Required" section specifies the year ended 31st October 2025, but the provided data for Bizna Distributor Company is for the year ended 31st December 2009. I will use the data provided for Bizna Distributor Company and prepare the accounts for the year ended 31st December 2009. Part (i): Prepare Trading Profit and Loss account for the year ended 31st December 2009 Step 1: Calculate the Cost of Goods Sold (COGS). $$ \text{Cost of Goods Sold} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock} $$ $$ \text{Cost of Goods Sold} = \text{shs } 285,000 + \text{shs } 1,830,000 - \text{shs } 315,000 $$ $$ \text{Cost of Goods Sold} = \text{shs } 1,800,000 $$ Step 2: Calculate the Net Profit. $$ \text{Net Profit} = \text{Gross Profit} - \text{Expenses} $$ $$ \text{Net Profit} = \text{shs } 600,000 - \text{shs } 360,000 $$ $$ \text{Net Profit} = \text{shs } 240,000 $$ Bizna Distributor Company Trading and Profit and Loss Account For the year ended 31st December 2009 | Particulars | shs | shs | | :-------------------------- | :---------- | :---------- | | Sales | | 2,400,000 | | Less: Cost of Goods Sold | | | | Opening Stock | 285,000 | | | Add: Purchases | 1,830,000 | | | Cost of Goods Available for Sale | 2,115,000 | | | Less: Closing Stock | (315,000) | | | Cost of Goods Sold | | (1,800,000) | | Gross Profit | | 600,000 | | | | | | Less: Expenses | | (360,000) | | Net Profit | | 240,000 | Part (ii): Prepare Balance sheet as at 31st December 2009 Step 1: Calculate Total Current Assets. $$ \text{Total Current Assets} = \text{Closing Stock} + \text{Debtors} + \text{Bank} $$ $$ \text{Total Current Assets} = \text{shs } 315,000 + \text{shs } 900,000 + \text{shs } 35,000 $$ $$ \text{Total Current Assets} = \text{shs } 1,250,000 $$ Step 2: Calculate Total Assets. $$ \text{Total Assets} = \text{Fixed Assets} + \text{Total Current Assets} $$ $$ \text{Total Assets} = \text{shs } 400,000 + \text{shs } 1,250,000 $$ $$ \text{Total Assets} = \text{shs } 1,650,000 $$ Step 3: Calculate Capital (Equity). $$ \text{Capital} = \text{Total Assets} - \text{Current Liabilities} $$ $$ \text{Capital} = \text{shs } 1,650,000 - \text{shs } 438,000 $$ $$ \text{Capital} = \text{shs } 1,212,000 $$ Bizna Distributor Company Balance Sheet As at 31st December 2009 | Assets | shs | shs | | :-------------------------- | :---------- | :---------- | | Non-Current Assets | | | | Fixed Assets | | 400,000 | | | | | | Current Assets | | | | Closing Stock | 315,000 | | | Debtors | 900,000 | | | Bank | 35,000 | | | Total Current Assets | | 1,250,000 | | Total Assets | | 1,650,000 | | | | | | Equity and Liabilities | | | | Capital | | 1,212,000 | | | |