Question 2 Superior Business Limited (SBL) has provided the following trial balance for the year ended 30 June, 2021. Details: Debit Credit Shs '000' Shs '000' Inventory as at 1 July, 2020 67,500 Prepaid rent as at 1 July, 2020 15,500 Wages and salaries 165,000 Advertising 54,400 Bad debts 12,400 Buildings at cost 225,000 Land 360,100 Fixtures and fittings at cost 126,000 Accumulated depreciation as at 1 July, 2020: Buildings Fixtures & fittings Carriage in wards Purchases Returns Sales revenue Share premium Share capital Page 76,500 32,500 23,400 345,000 23,500 12,300 834,900 124,500 354,800 Trade payables Trade receivables Bank 107,500 124,500 54,600 Cash at hand 12,500 Retained earnings as at 1 July, 2020 42,800 Total 1,597,600 1.597,600 Additional information: 1. Closing inventory is valued at Shs 45 million. 2. Depreciation on non-current assets is to be provided as follows: Buildings Depreciation rate 5% on cost Fixtures & fittings 25% on reducing balance 3. Rent for the financial year ended 30 June, 2021 was Shs 21.5 million. 4. The following are the prepayments and accruals at the end of the year: Prepayments Accruals Shs '000' Shs '000' Wages & salaries Advertising 21,500 12,800 17,800 19,500 5. 6. A debt due to James (credit customer) of Shs 1.5 million had been written off. James re-appeared and cleared Shs 1 million cash. He promised to pay the balance and issued a postdated cheque to that effect. Corporation tax for the year is estimated to be Shs 42 million. 51Page Required: Prepare for SBL for the year ended 30 June 2021, a statement of: (a) profit or loss. (b) (10 marks) financial position. (10 marks) (Total 20 marks)