Prepare income statement and statement of financial position as at 31 dec 2019

The Trial balance of Calvin, at 31 December 2019 is given as following: Dr (Rs'000) Cr (Rs'000) Plant & equipment at cost 300 Land & Building at cost 2,500 Motor vehicles at cost 80 Accumulated depreciation as at 1 January 2019; Plant & equipment 120 Buildings 800 Motor vehicles 30 Discount allowed 26 Discount received 25 Cash in hand 26.8 Bank 70 Returns outward 31 Loan interest paid 4.2 Property expenses 10 Sales revenue 2,096 Returns inwards 26 Wages and salaries 70 Insurance 31 Bad debts 15 Carriage outwards 10 Freight inwards 12 Custom duty on purchases 5 Electricity 30 Inventory at 1 January 2019 650 Administrative expenses 80 Marketing expenses 70 Distribution expenses 34 Allowance for receivables, at 1 January 2019 8 Purchases 1,100 Trade payables 170 Trade receivables 240 Capital 2,000 8% Debentures 50 Rent 60 Drawings 20 TOTAL 5,400 5400 Page 2 of 6 Additional information as at 31 December 2019: (1) Closing inventory has been valued at Rs555,000. This included goods costing Rs15,000 which had a net realizable value of Rs10,000. (ii) Marketing expenses include Rs6,000 paid for a marketing campaign which will start in October 2020. (iii) Rent increases from Rs60,000 per year to Rs84,000 per year as from 1" July 2019. This has not been taken into account. (iv) An amount of Rs8,000 will be uncollected. In addition, the allowance for receivables is to be adjusted to 3% of trade receivables. (v) Plant is depreciated at 5% per annum using the reducing balance method. (vi) Buildings are depreciated at 10% per annum on their original cost. At 31 December 2019, buildings were professionally valued at Rs1,800,000 andReturns inwards 26 Wages and salaries 70 Insurance 31 Bad debts 15 Carriage outwards 10 Freight inwards 12 Custom duty on purchases 5 Electricity 30 Inventory at 1 January 2019 650 Administrative expenses 80 Marketing expenses 70 Distribution expenses 34 Allowance for receivables, at 1 January 2019 8 Purchases 1,100 Trade payables 170 Trade receivables 240 Capital 2,000 8% Debentures 50 Rent 60 Drawings 20 TOTAL 5.400 5,400 Page 2 of 6 Additional information as at 31 December 2019: (1) Closing inventory has been valued at Rs555,000. This included goods costing Rs15,000 which had a net realizable value of Rs10,000. (ii) Marketing expenses include Rs6,000 paid for a marketing campaign which will start in October 2020. (iii) Rent increases from Rs60,000 per year to Rs84,000 per year as from 1s July 2019. This has not been taken into account. (iv) An amount of Rs8,000 will be uncollected. In addition, the allowance for receivables is to be adjusted to 3% of trade receivables. (v) Plant is depreciated at 5% per annum using the reducing balance method. (vi) Buildings are depreciated at 10% per annum on their original cost. At 31 December 2019, buildings were professionally valued at Rs1,800,000 and this valuation to be incorporated into the accounts. (vil) Motor vehicle is depreciated at 5% per annum using the straight line method. (vill) Electricity expenses due for the quarter ended 31st December2019 is Rs1,500 (ix) Goods Rs15,000 and cash Rs500 were taken out of the business for private use. (x) Calvin raised the loan on 1* July 2018 at an interest rate of 12% per annum, payable half yearly on 31 March and 30 September in each year. He settled Rs10,000 on 1st July 2019. No entry has been made in the books. REQUIRED