Prepare and Income statement and statement of financial position (balance sheet) for year ended 31st Dec 2020, show all workings.

Credit 000's Debit E000's 52,000 12,000 4,000 79,000 2,350 900 Purchases Inventory at 1 January 2020 Purchases returns Sales revenue Warehouse wages Sales returns Salespersons' salaries and commission General Salaries Administrative expenses Light and Heat expenses Rent and rates Advertising expense Dividends - interim dividend paid Plant and equipment cost Plant and equipment aggregate depreciation, 1 January 2020 Motor Vehicles at cost Motor Vehicles aggregate depreciation, 1 January 2020 Trade receivables Trade payables Provision for doubtful (bad) debts at 1 January 2020 Balance at bank 10% loan repayable 2025 Finance cost interest on loan) Share capital (el book value per equity share) Share premium account Retained earnings, 1 January 2020 Suspense account (see note 3 below) 4,850 8,170 1,580 1,300 2,320 600 90 35,400 8,400 12,600 2,000 18,400 10,300 700 4,040 6.000 300 9,000 3,300 23.220 2.900 152.860 152.860 Additional information: 1. Closing inventory amounted to 12,500. 2. A review of the trade receivables total of 18,400 showed that it was necessary to write off debts to- talling 1,400 and that the provision for doubtful debts should be adjusted to 2 per cent of the re- maining trade receivables. 3. Two transactions have been entered in the company's cash record and transferred to the suspense ac- count shown in the trial balance. They are: a. The receipt of 1,500 from the issue of 500 1 equity shares. b. The sale of some surplus plant. The plant had cost 6,000 and had a net book value of 600. The sale proceeds of 1,400 have been debited to the bank account and have been credited to the sus- pense account but no other entries have been made. 4. Depreciation should be charged at 10 per cent per annum on cost of all non-current assets at the end of the year. 5. The directors propose a final dividend of 4 cents per share on the shares issued at the end of the year. 6. Administrative expenses in the trial balance include an amount prepaid at the start of the year of 220. Further investigation has revealed that an amount of 390 is prepaid for the next year, 2021. 7. Light and Heat expenses of 1.300 are for expenses incurred from January 1st 2020 to October 31 2020. The auditor uncovered an electricity invoice of 330 paid on February 1 2021 for the previ. ous 3 months. The cheque was recorded in February 2021 but no other record was kept of this pay- ment, 8. Ignore taxation