Example The trial balance of Upendo Enterprises at 31st December 2014 showed the following: Dr (Tshs.) Cr (Tshs.) 160,000 150,000 5,400,000 2,350,000 Discounts Selling and Distribution expenses Cash and Bank Cost of sales Administration expenses Buildings Motor vehicles Sales Returns Accumulated Depreciation: Buildings Accumulated Depreciation: Motor vehicles Drawings Finance expenses Capital Debtors/Creditors Stock Additional Information: (i) (ii) 30,100,000 3,300,000 29,800,000 18,600,000 60,000 180,000 2,130,000 1,990,000 1,450,000 95,510,000 42,900,000 1,100,000 3,600,000 REQUIRED: Prepare: (a) The Statement of Income for the year ended 31st December 2014. (b) The Statement of Financial Position as at 31st December 2014. 45,860,000 1,890,000 95,510,000 Depreciation on building is 2% on book value while depreciation on motor vehicle is 5% on cost. Depreciation is to be charged to administration expenses. Prepaid selling and distribution expense are Tshs. 20,000 while accrued finance charges are Tshs. 30,000.