a$)$ The following trial balance was obtained from the books of Uji maji wholesalers for the year ended $30$th September $2022.$

Sh$.000$ sh$\mathrm{.}000$

Capital $1\mathrm{.}10\mathrm{.}20211,400$

Purchases and sales $2,5006,500$

Motor vehicles $800$

Land and buildings $($land &buildings sh$\mathrm{.}800,000)1000$

Inventory $1\mathrm{.}10\mathrm{.}2021450$

Salaries and wages $150$

Returns $200300$

Discounts $150250$

Accounts receivable and accounts payable $650450$

Postage and telephone $250$

Rent and rates $200$

Plant and machinery $1500$

Light and electricity $600$

Cash at bank $500$

Cash in hand $150$

$10\%$ loan $1000$

Loan interest $50$

Advertising $100$

Insurance $150$

Drawings $500$

$9,9009,900$

Additional information:

$1.$ Inventories on $30$th September amounted to $500,000$

$2.$ Rent and rates were prepaid by $50,000$ while salaries and wages were accrued by Sh$.100,000$

$3.$ Depreciation is to be provided as follows

$$ Buildings $2\mathrm{.}5\%$ on cost

$$ Motor vehicles $20\%$ on cost

$$ Plant and machinery $10\%$ on cost

$4.$ Bad debts to be written off amounts to sh$.25,000$

Required:

a$)$ Income statement for the period ended $30$ September $2022(8$ Marks$)$

b$)$ Statement of financial position as at $30$ September $2022$