Question 2 The following linancial inommation has been extracted from the books of Bek Bakara Limited as at 30 June 2020. S000 $000 2.140 3,660 2.340 160) 1,140 3.000 5.520 5.000 3,920 4.000 10.0/60 2,020 3,540 2.100 Inventory at 1/7/2019 Account receivables and payables Allowance for receivables Bank overdraft Directors' fees Wages and salaries Buildings at cost Plaut and equipment al cost Ordinary shares of $1 each Reluined camins al 1/7/2019 General distribution costs General administrative expenses Land at cost Rental income Disposal of vehicles Bank overdraft interest Accumulated depreciation at 1/7/2019 -Building -Plant and equipment Vehicles Dividend paid Corporation tas Vehicles al cost Purchases Goodwill at cost Sales 600 200 180 1,800 1,520 2.640 100 120 5,680 9,760 6,000 28,610 S3,220 53,220 Additional information: 1. Account receivables include inecoverable debts of $160.000, which is to be willen ofl. An allowance for receivables should then be created, representing 4% of the account receivables which remain after the irrecoverable debt has been written off. Corporation tax for the year to 30 Jue 2019 was over-provided by $120,000. A provision for corporation tax for the year ended 30 June 2020 of $600.000 is required 2 The company's depreciation policy is as follows: MIDIST AY20221 Sem 1 UUS Y APC 316 International Financial Reporting (Prodessional Main Assignment: 2020 Page 3 of 7 i. Building - 1% per anmum using the straight-line method ii. Plant and equipment - 20% per annum using the reducing balance method 111 Vehicles - 25% per annum using the straight-line method No depreciation is required for the land, A full year's depreciation is charged in the year of purchased and no depreciation is charged in the year of disposal. 1. Inventory is value at $2,380,000 as at 30 June 2020. 5. On 2 January 2020, some vehicles were sold for $200,000. The sale proceeds have been banked and a vehicle disposal account credited, but no other entries have been made to this disposal. These vehicles liad initially cost $880.000 when they were purchased on 25 August 2016 The net book value was $220,000 at the date disposal Required: a a. Prepare the Income Statement of Bek Bakara Limited for the year ended 30 June 2020 (8 marks) b b. Prepare the statement of financial position of Bek Bakara Limited as at 30 June 2020. (8 marks)