Dr. Odunga started a business of selling children's clothes on 1 July 2020. He commenced the business with a capital of Sh.14.000,000. He deposited this amount in a business bank account. During the year, Dr. Odunga made the following payments through the bank account: Purchases of furniture and fittings. Salaries Electricity Rent Payment to suppliers Drawings Insurance Additional information: 1. Gross profit is 20% of the sales. Sh.000" 2450 399 14 175 5460 210 35 2. Total purchases during the year amounted to Sh.8,400,000. 3. Inventory as at 30 June 2021 was valued at Sh.1,400,000. 4. Depreciation on furniture and fittings is provided at 10% per annum on cost. 5. Accounts receivable as at 30 June 2021 amounted to Sh.1,400,000. 6. Rent accrued as at 30 June 2021 amounted to Sh.70,000. 7. On 1 January 2021, Dr. Odunga obtained a ten-year loan of Sh.5,600,000 at an interest rate of 12% per annum from the bank. The amount was credited into his business bank account. Required: (a) Income statement for the year ended 30 June 2021 (b) Statement of financial position as at 30 June 2021 (6 marks) (4 marks)