QUESTION TWO Nonde Esnart plc, a retailing company, has an authorized share capital of 700,000 ordinary shares of K1 each. The following trial balance was extracted from the books of account as at 31 December 2019. Dr KOOO Cr K000 560 140 180 100 400 200 118 120 Issued share capital Share premium account Income statement 10% Debentures Furniture and fittings at cost Depreciation to 1 January 2019 Cash balances Trade creditors Trade debtors Inventory at 1 January 2019 Hire charges (distribution, vehicles, etc) Purchases Administration expenses Deferred taxation Distribution costs Accrued expenses Auditors'remuneration Interim dividend (paid on 1 July 2019) Trade investments at cost (market value K170,000) Debenture interest (gross) Dividends received (on 1 December 2019) Turnover Prepaid expenses 500 400 680 1,000 300 80 200 50 40 14 140 10 30 2,400 58 3860 3860 You are also given the following information: (a) Turnover excludes value added tax. (b) Inventory at 31 December 2019 was valued at K600,000. (c) Depreciation of K80,000 is to be charged on the furniture and fittings for the year to 31 December 2019. (d) Administration includes directors 'emoluments of K110,000. (e) The corporation tax payable (based on the profits for the year to 31 December 2019 at a rate of 30 per cent) is estimated to amount to K100,000. (f) The company proposes to pay a final ordinary dividend of 10 per cent. Required: Prepare financial statements for publication, together with relevant notes. (Work to the nearest K1,000)