61 Here is we trial & Burma Limited as at som April 2018. $ dr 102994 200,000 227,212 54.818 30,000 5.2002 12411 Inventory Share Tapital alhorised and ser Accounts receivable Accaurits Eelmente 8% L002 notes Ron Cirent assets zoplacnerf reine Keltained Boleh Lean rute interest gicament et se Mites Vehicle at cost Bank Cash. Sales Purchases Retrn Truiends Corage aards Salenton Salaries Wages and Salaries Refe, hussiness patts and purance Directors, remunerations Discount allowed Accumulbuled frovisions for depreceations Motor Vehicle 7600 225,000 57,200 4973 62. 880426 49,20 78.460 1452 30,000 93,282 16,240 82,400 3415 32,600 Laupment 78200 11,283,455 1 1,283,455 .. The following additional information is to be taken into account: 1) Inventory at 30 April 2018 was valued at K111,317 2) Accrued rent K802 ; Directors' remuneration K6,000 3) Loan note interest 2 year's interest owing 4) Depreciation on cost: Equipment 20%; Motor vehicles 25%. 5) Transfer to reserves : General reserve K5,000 : Non-current asset replacement reserve K10,000 6) Within two weeks of the balance sheet a notice of liquidation was received by Burma Limited concerning one of the company's receivables. K15, 119 is included in the statement of financial position for this receivable and enquiries reveal that only K10.000 is likely to be received. No adjustment has been for this item in the accounts. 7) An allowance of 5% should be created on accounts receivables. Required: a) Discuss the main objectives of preparing financial statements. b) Contrast between the income statement and the statement of comprehensive income. c) Discuss the main purpose of a conceptual frame work in the preparation of financial statements d) Using the information given in the trial balance above, prepare the statement of profit or loss for the year ending 30 April 2018 in accordance with the Companies Act and relevant accounting standards