Q3 FINANCIAL STATMENTS: ( 6 Marks) Star Light Itd. Has an authorized capital of Rs. 2,00,000 divided into 20,000 of Rs. 10 each. Following is the pre closing trail balance on December 31, 2016 Cash 400.000 Starlight Limited Trail Balance As on December 2015 debe balances $500 ace. Receivable 35.000 inventory 30.000 machinery 200.000 building 350.000 purchases 350.000 carriage in 1.000 salaries expenses 3,000 director's fees 3.000 rent expenses 4,000 office supplies prepaid inwarance 1500 credit balances share capital A. For bad debits a Payable retained in 1200 100.000 250.000 1750 5.000 commission income 20. bond payable TOTAL 315.000 325,000 Additional information: 1. Depreciation for the year of machinery at 10% and building at 15% 2. Insurance expired Rs. 500 3. Rent expenses for the year was Rs.3000 4. Allowance for bad debts is to be maintained at 4 percent of account receivable. 5. Accrued interest on bond for three months. & Merchandise ending valued Rs. 35,000 7. The company decided to declare cash dividend of Rs 7500 and appropriate a sum of Rs. 20000 for building extension REQUIRED 1. Prepare an income statement for the year ended December 31, 2016 2. Prepare balance sheet as on December 31, 2016 AVALETION CECCOUNTIVE DECEAE (EVANS