A. Chibwe Limited is a limited liability company with an accounting year end of 31 October. The following trial balance has been extracted as at 31 October 2019. Dr Cr K000 K000 Plant at cost 440 - Depreciation on plant, 1 November 2018 - 220 Buildings at cost 1,480 - Depreciation on buildings, 1 November 2018 - 120 Bank balance - 140 Sales - 3,600 Net purchases 2,280 - Inventory at 1 November 2018 320 - Cash 40 - Trade payables - 500 Trade receivables 640 - Administration expenses 650 - Allowance for receivables at 1 November 2018 - 20 Retained earnings at 1 November 2018 - 260 Equity share, K1 - 830 Share premium - 160 Page 1 of 8 5,850 5,850 The following additional information is also available: 1. The allowance for receivables was to be increased to an amount equivalent to 5% of trade receivables. The allowance for receivables is treated as an administrative expense. 2. Plant is depreciated at 20% per annum using the reducing balance method and buildings are depreciated at 5% per annum on their original cost. Depreciation is treated as a cost of sales expense. 3. Closing inventory has been counted and is valued at K150,000. Required: i. Prepare the statement of profit or loss of Chibwe Limited company at the year end of 31 October 2019. (5 marks) ii. Prepare the statement of financial position of Chibwe Limited company as at 31 October 2019.