Question 4 Elegant Productions Ltd is a limited liability company. The company's financial year runs from January to December. On December 31, 2016 the following Trial Balance was extracted from the company's books: Trial Balance for period ending December 31, 2016 Details/Accounts Dr $'000 Cr $,000 Buildings at cost 8,500 Buildings, accumulated depreciation, January 1, 2016 Plant at cost 850 2,700 Plant, accumulated depreciation, January 1,2016 1,350 Bank balance 1,000 Revenue 22,000 Net purchases 14,000 Inventory, January 1, 2016 2,000 Cash 300 Accounts payable 3,200 Accounts receivable 4,800 Administrative expenses 3,900 Allowance for receivables, January 1, 2016 150 Retained earnings, January 1, 2016 1,700 Equity shares, $1 each Share premium 4,850 1,100 36,200 36.200 Notes: (1) The allowance for receivables is to be adjusted to 5% of trade receivables. The allowance for receivables is treated as an administrative expense. (2) Plant is depreciated at 10% per annum using the reducing balance method and buildings are depreciated at 6% per annum straight line. (3) Closing inventory was counted and valued at $1,450,000. (4) $100,000 paid for fuel costs related to the succeeding financial year. Fuel costs are included in administrative expenses. Required: (a) Prepare the statement of profit or loss for the financial period. (13 marks) (b) Prepare the Balance Sheet of Elegant Productions Ltd for the year ending December 31, 2015 (12 marks) END OF QUESTION PAPER 5