Nawakarn Ltd manufactures vegan friendly soap products that cut grease and grime without drying your hands. The following trial balance has been extracted from the books of Nawakarn Ltd:

Additional information: 1. Closing inventory at cost was 7,570. However, some items of inventory costing 900 have been partially damaged in a fire. As a result, costs of 250 will be required to repair them and then it is expected that they can be sold for 800.

2. Bad debts amount to 79.

3. After the year-end, an invoice of 3,600 for telephone expense was received covering the 3 months ending 31 December 2021. This invoice is to be paid in 2022.

4. Included in the rent of 6,300 is a payment of 2,700 on 1 September covering the next 3 months ending 30 November.

5. Depreciation of 2,666 is to be charged on Land & Buildings with 16,765 charged on Machinery.

6. The tax charge for the year is to be 2,066.

Required: Prepare Nawakarn Ltds income statement for the year to 31 October 2021 and a statement of financial position as at that date.

Trial Balance of Nawakarn Ltd as at 31 October 2021 DR. CR. Accumulated Depreciation - Land & Buildings 67,334 Accumulated Depreciation - Machinery 218,935 Bank 54,203 Trade Payables (Creditors) 16,145 Trade Receivables 1,399 Dividends 1,919 Electricity 6,840 Insurance 2,700 Interest 8,259 Land & Buildings 331,500 Loan 169,000 Machinery 346,400 Opening Inventory (Stock) 9,040 Ordinary Shares 100,000 Other Operating Income 3,006 Purchases 245,530 Rent 6,300 Retained Earnings 70,670 Sales 317,590 Share Premium 70,000 Telephone 4,440 Wages & Salaries 14,150 1,032,680 1,032,680