Prepare, for internal use, the following financial statements for Samarkand Darvoza Ltd. a.

The income statement for the year ended 31 December 2020;

b. The statement of financial position as at 31 December 2020.

Task 1 Cr The trial balance of Samarkand Darvoza Ltd, a limited liability company, at 31 December 2020 was as follows: Dr $ $ Revenue 3,500,000 Discount received 80,000 Discount allowed 70,000 Bank balance 147,000 Buildings at cost 1,040,000 Buildings, accumulated depreciation 1/1/2020 160,000 Equipment at cost 1,200,000 Equipment, accumulated depreciation 1/1/2020 400,000 Land at cost 345,000 Purchases 2,170,000 Returns inwards 15,000 Returns outwards 17,000 Electricity expenses 270,000 Administrative expenses 60,000 Trade payables 1,030,000 Trade receivables 700,000 Freight inwards 105,000 Wages and salaries 250,000 10% of loan notes 580,000 General reserve 35,000 Allowance for receivables at 1/1/2020 30,000 Director's remuneration 60,000 Retained earnings at 1/1/2020 115,000 Ordinary shares capital 1,000,000 Inventory at 1/1/2020 515,000 6,947,000 6,947,000 Additional information as at 31 December 2020 1. Closing inventory has been counted and is valued at $560,000. 2. There are wages and salaries to be paid of $42,000. 3. Loan note interest has not been paid during the year. 4. The allowance for receivables is to be increased to $40,000. 5. Equipment is depreciated at 25% per annum using the reducing balance method. 6. Buildings are depreciated at 5% per annum on their original cost. 7. The tax has been calculated as $70,000 for the year