Question 1 The following trial balance was extracted from the books of Biska Ltd. on 31* December 2017. Dr Cr Buildings at cost 555,000 Buildings accumulated depreciation at 01/01/2017 45,000 Plant at cost 165,000 Plant accumulated depreciation at 01/01/2017 83,000 Land at cost 78,000 Bank 38,000 Sales 1,350,000 Purchases 830,000 Discount 67,000 Returns inwards 26,000 Wages 140,000 Light & heat 79,000 Inventory 01/01/2017 120,000 Trade payables 187,000 Trade receivables 240,000 Administrative expenses 78,000 Provision for doubtful debts 01/01/2017 8,000 Directors remuneration 53,000 10% Debentures 38,000 Other reserves 75,000 Ordinary Share Capital 473,000 2,364,000 2,364,000 The following additional information is provided: 1) Closing inventory at 31/12/2017 was valued at 75,000. 2) The expenses listed below should be apportioned as indicated: Cost of Distribution Administration sales Light & heat 50% 20% 30% Wages 60% 15% 25% costs costs 3) An invoice of 11,000 for light & heat for December 2017 has not been received yet. 4) Bad debts of 15,000 are to be written off. 5) The allowance for doubtful debts is to be increased to 5% of trade receivables outstanding at year-end. 6) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales. 7) Buildings are to be depreciated 5% per annum straight line. The charge is to be allocated 20% to cost of sales, 30% to distribution and 50% to administration. 8) Tax has been calculated at 14,120 for the year. 9) Debenture interest is yet be paid Requirement: (a) Prepare the statement of profit or loss for the year ended 31* December 2017 and a statement of financial position as at that date in a format suitable for publication. Show all workings clearly. (40 marks)