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QUESTION TWO (20 MARKS) Ngamia One co. Ltd has been trading for some years as a distributor. The following list of balances has been extracted from his ledger as at 30 June 2018 Details Amount (Ksh) Amount(Ksh) Capital 838,870 Sales 2,598,700 Creditors 198,400 Return outwards 134,070 Provision for doubtful debts 5,120 Discount Allowed 23,060 Discount Received 17,500 Purchases 1,356,800 Return inwards 56,240 Carriage outwards 45.620 Drawing 184,400 Carriage inwards 118,300 Rent & Rates 259,730 Heat & Light 110,100 Stationary 24,100 Advertising 59,800 Salaries & Wages 385,210 Bad debts 20,080 Cash in hand 5,340 Cash at bank 44.400 Stock as at 30" June 2017 156,540 Debtors 245,000 Fixtures and fittings (Cost) 1,207,400 Provision for depreciation 750,940 Totals 4,302,120 4,302,120 The following additional information as at 30june 2018 is available a. Stock at the close of business was valued at Sh 177,500 b. Insurances have been prepaid by Sh 11,200 c. Heating and lighting is accrued by Sh13,600 d. Rates have been prepaid by Sh 54,350 e. The provision for doubtful debt is to be adjusted so that is 5% of trade debtor f. Depreciation policy on fixtures and fittings is to be provided at 10 % pa. On cost. Required: a) Prepare Sweet Orchards co. Ltd's income statement for the year ended 30 June 2018 (10 Marks) by Prepare Sweet Orchards co. Ltd's statement of financial position as at 30 June 2018 (10 Marks)