QUESTION $1A$

As at May $31,2024$ Marko Consultancy & Engineering Services Limited had been in operation for seven $(7)$ years. Marko rents three $(3)$ conmercial units at the Sunchine Village lndustrial Complex in Negril for $$20,000$ per unit per month. Since August $1,2023$ he sub$-$lets one of the units to his primary sub$-$contractor, Rambo Built Franses for $$25,000$ per month.

Below is an extract of Marko's trial balance for the year ended May $31,2024.$

$\backslash$table$[[$DETAILS$,$DR$,$CR$],[,$S$,3],[$Wages and Salaries,$3,470,000,],[$Trade Payables,,$260\mathrm{.}000],[$Rent Received,,$340,500],[$Provision for Bad Debts,,$188,000],[$Maintenance$,434,500,],[$Insurance$,127,000,],[$Cash$,40\mathrm{.}000,],[$Capital$,,14,000,000],[$Lisht and Heavy Duty Vehicles.,$15\mathrm{.}440\mathrm{.}000,],[$Provision for Depreciation on Light and Heavy Duaty Vehicles,,$3,309,000],[$Computers & Other Devices,$4,300,000,],[$Provision for Depreciation on Compaters & Other Devices,,$1,497,000],[$Returns$,178,000,192\mathrm{.}000],[$Purchases$,5,860,000,],[$Law Suit Procecds,,$1,425,000],[$Electricity Charges,$257,000,],[\backslash$table$[[$Drawings$]],1,430,000,],[$Discounts$,156000,121,000],[$Bad Debts,$250,000,],[$Trade Receivables,$1\mathrm{.}389\mathrm{.}000,],[$Sales$,,8,350,000],[\backslash$table$[[$Rent Expense$]],540\mathrm{.}000,],[$Inventory at $1$ April $2023,920,600,],[$Commission Received,,$25,600],[$Basiness Expansion Loan,,$8,500,000],[$Bank$,,365,000],[$Furniture$,$ Fixtures and Fittings,$5,420,000,],[$Provision for Depreciation on Furniture, Fixtures and Fittings,,$1,639,000],[,40\mathrm{.}312\mathrm{.}100,40\mathrm{.}312\mathrm{.}100]]$

Notes

At the end of the financial year it was noted that $$48,000$ in merchandise was missing. Marko advised he had taken them.

Maimenance is the cost of a two$-$year service contract with Sure Calibration Plc$.$ June $2023$ to May $2024$ is the first year for the service contract.

Stock at year end was valued at $$208,000$ but goods costing $$100,000($a material amount$)$ were erroncously not included in the count.

Wages and Salaries prepaid is $$60,000.$

The depreciation rate for all assets is $20\%$

All assets are depreciated using the redacing balance method expect Computers and Other Devices.

Commission is prepaid by $$5,600.$

The provision for bad debts is to be adjusted to $12\mathrm{.}5\%$ of trade receivables.

$2$

REOUIRED:

For the period under review, prepare:

a$.$ The Statement of Profit or Loss

$[33$ marlas$]$

b$.$ The Statement of Financial Position

$[23$ marlas$]$