Question 5 (12 marks) Elliot Trading cc, has an accounting year end of 31 October. The accountant is preparing the financial statements as at 31 October 2017 and requires your assistance. The following Trial balance has been extracted from the general ledger. Debit Credit 740 000 60 000 220 000 110 000 70 000 1 800 000 Buildings at cost Buildings accumulated depreciation 1.11.2016 Plant at cost Plant accumulated depreciation, 1.11.2016 Bank Revenue Net purchase Inventory Cash Payables Receivables Administrative expenses Allowance for receivables at 1.11.16 Capital 1 140 000 160 000 20 000 250 000 320 000 325 000 10 000 625 000 2 925 000 2 925 000 The following additional information is also available: 1. The allowance for receivable is to be increased to 5% of trade receivables. The allowance for 5 receivable is treated as an expense. 2. Plant is depreciated at 20% per annum using reducing balance method and buildings are depreciated at 5% per annum on their original. Depreciation for the buildings and the plant should be treated as drawing 3. Closing inventory has bocn counted and is valuod at NS 75 000. Page 22 of 24 4. An invoice of N$15 000 for energy costs relating to the quarter ended 30 November 2017 was received on 21 December 2017. Energy costs are included in administrative expenses. You are required to: 21 a) Prepare a statement of comprehensive income for the year ended 31 October 2017