3. The trial balance taken from the accounting system of Marmaland at 31 December 2020 showed the following: () () 75,000 18,750 11,000 51,750 137,500 16,000 Plant and Machinery: Cost Accumulated depreciation at 1/1/20 Cash at bank Capital Purchases Inventory at 1/1/20 Bank loan, repayable 2026, interest @ 10% p.a. Sales Provision for doubtful debts at 1/1/20 Wages Interest Insurance Heat, light & power Advertising Accounts receivable/payable Rent 16,250 225,000 750 35,000 1,000 6,000 10,000 2,000 22,500 11,500 327,500 15,000 327,500 Notes: a) Inventory at December 31, 2020 has been valued at 17,500 following a year-end stock count. b) The firm's policy is to ensure that the provision for doubtful debts amounts to 5% of the total receivables' balance at the year-end. c) Depreciation is to be calculated using the straight-line method over an expected life of 4 years assuming zero scrap value. d) At December 31, 2020, rent for November and December 2020 is outstanding. Rent is 1,000 per month. e) The interest paid in the trial balance is in respect of the long-term loan and represents the amounts paid during the year. f) The amount for insurance is the premium for the twelve months to June 30, 2021. REQUIRED i. Prepare an income statement for Marmaland for the year ended December 31, 2020 and a statement of financial position as at that date. (17 marks) ii. In your own words, explain what a trial balance is and how it is used in the preparation of financial statements. Your explanation can be handwritten OR typed (approximately 215 words). (8 marks)