QUESTION TWO c) The following Trial Balance has been extracted from the general ledger of JB Plc, a Zambian Company listed on the Lusaka securities exchange for the period ended 315 December, 2017. Dr Cr Km Km 900 60 315 135 67 1,910 1.140 70 20 Buildings at cost Buildings accumulated depreciation, 1 January 2017 Plant at cost Plant accumulated depreciation, 1 January 2017 Bank balance Revenue Net purchases Inventory at 1 January 2017 Cash Trade payables Trade receivables Administrative expenses Distribution expenses Retained eamings at 1 January 2017 Equity shares, 50 ngwee nominal value 10% preference shares 15% Bonds Share premium account 128 100 320 130 110 405 100 50 30 2.995 2.995 1. 11. 111. iv. The corporate tax is payable at the rate of 30% per year. The allowance for receivables is 4% of trade receivables. The allowance for receivables is treated as an administrative expense. Plant is depreciated at 25% per annum using the reducing balance method and buildings are depreciated at 3% per annum on their original cost. Depreciation is treated as a cost of sales expense. Closing inventory has been counted and is valued at K95million. An amount of K700,000 for internet costs relating to the first quarter ending 31st March, 2018 was paid on 25th December 2017. Transport cost relating to delivery of goods in November, 2017 amounting to K2million is payable to BJ Transport Company. All these costs are charged to distribution expenses. The interest on bonds has not been paid. The proposed dividend on ordinary shares is 5 ngwee per share while the preference dividend has not been paid. V. V1. Required: a) Prepare the following financial statements for the year ended 31 December I. statement of comprehensive income II. statement of financial position