A Instructions: Create an excel spreadsheet and paste your answer below this question. Beautiful Sun Set (BSS) Ltd is online business that makes and sells customised clothing for people travelling abroad from the UK. The following trial balance has been prepared from the accounts of the business at 30 June 2022. Debit Credit Advertising Cash Trade payables Debentures (10%) Trade receivables Directors' remuneration Electricity Insurance Investments (quoted) Investment income 60,000 14,000 138,000 140,000 600,000 110,000 56,000 34,000 56,000 8,000 machinery: at cost 840,000 Accumumalted depreciation at 01/07/2021 304,000 Office expenses $8,000 Ordinary share capital (issued and fully paid) 400,000 Preference shares 100,000 Preference share dividend 8,000 Retained earnings at 01/07/2021 264,000 Allowances for doubtful debts 16,000 Purchases Rent and rates Sales Inventory at 01/07/2021 Vehicles: at cost Accumulated dreciation-vehicles Wages and salaries 2,480,000 150,000 4,200,000 268,000 160,000 80,000 716,000 5,650,000 5,650,000 Additional information: 1. Inventory at 30 June 2022 valued at cost amounted to 310,000. 2. Depreciation is to be provided on machinery and vehicles at a rate of 20 per cent and 25 per cent, respectively, on cost. Vehicles are used to deliver goods to customers. 3. Accrual is to be made for auditors' remuneration of 24,000 and debenture interest. 4. Insurance paid in advance at 30 June 2022 amounted to 6,000. 5. The allowance for doubtful debts is to be made equal to 5 per cent of outstanding trade receivables as at 30 June 2022. Page 2 of 11 5. The allowance for doubtful debts is to be made equal to 5 per cent of outstanding trade receivables as at 30 June 2022. 6. Corporation tax owing at 30 June 2022 is estimated to be 120,000. 7. An ordinary dividend of 10p per share is declared just before the year end. 8. The investments had a market value of 60,000 at 30 June 2022. 9. The company has an authorised share capital of 800,000 ordinary shares of 0.50 each and of 100,000 8 per cent cumulative preference shares of 1 each. Required: (a) Prepare Beautiful Sun Set (BSS) Ltd's statement of profit or loss and statement of retained earnings for the year to 30 June 2022 and a statement of financial position as at that date. Expenses in the statement of profit or loss must be classified into selling and distribution, administration expenses, and finance expenses. (15marks) (b) Explain why shareholders of Beautiful Sun Set (BSS) Ltd's would not necessarily have been able to sell the business for its net assets value as at 30 June 2022