Question 01 - (30 Marks) The following balances are taken from the books of Rajarathne Suppliers at the end of his first year trading on 31 December 2020. Debit (Rs.) Credit (Rs.) Purchases 155,000 Stock (2020.01.01) 35,000 Sales 328,000 Land and Building 185,000 Debtors 32,000 Creditors 15,000 Electricity Expenses 6,000 Motor Vehicle 200,000 Furniture 30,000 Insurance 2,000 Wages and Salaries 9,000 Advertising 5,500 Cash in hand 15,000 Drawings 4,000 Bad Debts 500 Bank Balance 7,000 Provisions for doubtful debts 1,000 Provisions for depreciation (2020.01.01) ~Building 10,000 ~ Motor Vehicle 30,000 Furniture 3,000 Capital Investment 270,000 Bank Loan 20,000 Discounts Received 2,000 Other Income 7,000 686,000 686,000 Following additional information is available: Inventory at 31 December 2020 was valued at 25,000 LKR. Provisions for doubtful debt should be 5% of debtor's balance. Annual Interest for bank loan is 12%. Annual Depreciation, o Building 8% o Motor Vehicle 10% o Furniture 5% Required: (a) Prepare income statement for the year ended 31 December 2020. (15 Marks) (6) Prepare the balance sheet as at 31 December 2020. (15 Marks)