i need a detailed answer please for the sake os my revision. Thank you

thats all the info i have fkr the question

Q2 REVISION QUESTION This is L1 material & you need to do this in order to build on this knowledge afor 12, The following Trial Balance has been extracted from the books of Avesco Plc, a retailer of fine Italian Goods, at 31 December 2018: 000's 000's Sales 16,502 Purchases 7,920 Inventory as at 1 Jan 2018 676 Rent 200 Delivery expenses 2,960 Administrative expenses 3,244 Audit fee 18 Directors' remuneration 152 Freehold land and buildings at cost 4,000 Fixtures and fittings at cost 780 Motor vehicles at cost 924 Accumulated depreciation on fixtures and fittings 390 Accumulated depreciation on motor vehicles 224 Receivables 892 Bank 54 20 Allowance for irrecoverable debts Payables 1,476 400 8% Debentures (redeemable 2028) 2 Ordinary share 500 100 Share premium Retained earnings 1,308 26 Ordinary dividend 16 Debenture interest 900 8% 1 irredeemable preference shares Preference dividend 36 30 Bank interest 21,874 21,874 The information given below relates to the year ended 31 December 2018: 1) Depreciation on non-current assets is to be charged at the following rates: 20% by the reducing balance method on motor vehicles; 20% on cost by the straight line method on fixtures and fittings Note: no non-current assets were purchased or disposed of during the year to 31 December 2018 2) At 31 December 2018, additional delivery expenses accrued amounted to 88,000 3) The figure for administrative expenses includes a prepayment of 36,000 4) The annual rental of the premises is 120,000. No rent was owed at the start of the year. 5) For financial reporting purposes all expenses, other than delivery expenses and depreciation on relevant assets, are considered to be administrative expenses. 6) A bad debt of 12,000 is to be written off and an allowance for irrecoverable debts of 2% of remaining debts is to be provided. 7) The directors have proposed a final dividend of 12p per share on the ordinary shares and propose to pay the remainder of the preference dividend - both to be paid on 30 April 2019. 8) The second instalment of debenture interest was due but unpaid as at 31 December 2018 9) Inventory at 31 December 2018 amounted to 740,000 at cost and had a net realisable value of 700,000 10) The corporation tax liability has been estimated to be 354,000. Required (round workings to the nearest 1,000): a) Prepare the income Statement for Avesco Plc for the year ended 31 December 2018 together with an analysis of the expenses. (40%) b) Prepare the company's Statement of Financial Position at 31 December 2018 together with an analysis of non-current assets. (40%) c) Explain the purpose of depreciation. (10%)