$($ii$)$ The following is the trial balance of Madaraka Ltd at $31$st March $2021.$

KES$000$ KES$000$

Issued share capital $($ordinary shares of KES $1$ each$)42,000$

Leasehold properties, at cost $75,000$

Motor vans, at cost $($used for distribution$)2,500$

Provision for depreciation on motor vans to $31$ March $20201,000$

Administration expenses $7,650$

Distribution expenses $10,000$

Stock, $31$ March $202012,000$

Purchases $138,750$

Sales $206,500$

Directors$$ remuneration $($administrative$)25,000$

Rents received $3,600$

Investments at cost $6,750$

Investment income $340$

$7\%$ Debentures $15,000$

Debenture interest $1,050$

Bank interest $162$

Bank overdraft $730$

Debtors and creditors $31,00024,100$

Interim dividend paid $1,260$

Profit and loss account, $31$ March $202017,852$

$311,122311,122$

You ascertain the following:

$$ All the motor vans were purchased on $1$ April $2018.$ Depreciation has been, and is to be$,$ provided

at the rate of $20\%$ per annum on cost from the date of purchase to the date of sale. On $31$ March

$2021$ one van, which had cost KES$900,000$ was sold for KES $550,000$ as part settlement of the price

of KES$800,000$ of a new van, but no entries with regard to these transactions were made in the

books.

$$ The estimated corporation tax liability for the year to $31$ March $2021$ is KES $12,700,000.$

$$ Stock at the lower of cost or net realizable value on $31$ March $2021$ is KES$16,700,000.$

Required:

a$)$ Prepare Statement of Profit or Loss and Other Comprehensive Income for the year ended $31$ March $2021(8$

marks$)$

b$)$ Prepare the statement of financial position as at that date.