(a) The trial balance extracted from H. Melinda, a sole trader, as at 31 December 2020 was as follows: H. Melinda Trail B You ate given ule tonowing adultomat mormation: 1. Inventory in trade on 31 December 2020 is K37 712. 2. Rates paid in advance at 31 December 2020 is K240. Page 8 of 11 3. General expenses unpaid at 31 December 2020 is K1 864. 4. Allowance for irrecoverable receivables is to be adjusted to K1 720 . 5. A new vehicle was purchased at a cost of K16 000 on 31 December 2020 on credit. The amount due on the new vehicle was payable within one month. No entries had been made in the books in respect of this transaction when the trial balance at 31 December 2020 was extracted. 6. Depreciation is to be charged on furniture and equipment at the rate of 5% percent per annum on cost and on the vehicles at the rate of 25% per annum on cost. Required: (i) Prepare H. Melinda's statement of profit or loss for the year ended 31 December 2020. (ii) Prepare H. Melinda's statement of financial position as at 31 December 2020. [10 Marks] (a) The trial balance extracted from H. Melinda, a sole trader, as at 31 December 2020 was as follows: H. Melinda Trail B You ate given ule tonowing adultomat mormation: 1. Inventory in trade on 31 December 2020 is K37 712. 2. Rates paid in advance at 31 December 2020 is K240. Page 8 of 11 3. General expenses unpaid at 31 December 2020 is K1 864. 4. Allowance for irrecoverable receivables is to be adjusted to K1 720 . 5. A new vehicle was purchased at a cost of K16 000 on 31 December 2020 on credit. The amount due on the new vehicle was payable within one month. No entries had been made in the books in respect of this transaction when the trial balance at 31 December 2020 was extracted. 6. Depreciation is to be charged on furniture and equipment at the rate of 5% percent per annum on cost and on the vehicles at the rate of 25% per annum on cost. Required: (i) Prepare H. Melinda's statement of profit or loss for the year ended 31 December 2020. (ii) Prepare H. Melinda's statement of financial position as at 31 December 2020. [10 Marks]