QUESTION TWO The following information relates to a company called GBS520 2021 Ltd for the 12 months ending 31st December 2021: GBS520 2021 LTD TRIAL BALANCE AS AT 1ST JANUARY 2021 CR DR 590,000 224,500 450,000 195,000 1,500,000 380,000 Fullscreen Snip 80,000 70,000 Motor Vehicles at Cost Accumulated Depreciation Motor Vehicles Plant and Machinery at Cost Accumulated Depreciation Plant and Machinery Buildings at Cost Accumulated Depreciation Buildings Stocks at 1 January 2021 Trade Debtors Provision for doubtful debts Bank Prepayments Share capital Accumulated Reserves Long Term Loan Trade Creditors Accruals 50,000 10,000 4,500 750,000 569,000 68,000 270,000 198,000 2,704,500 2,704,500 Transactions for 2021: Sales on credit Sales in Cash Distribution costs paid through the Bank Receipts from Trade Debtors directly into the Bank Interest on Loan paid through the Bank Repayment of Long Term Loans through the Bank Payment to Trade Creditors through the Bank Purchases on credit Purchases in cash Insurance paid through the Bank Selling expenses in cash Salaries paid through the Bank Repairs and Maintenance paid through the Bank Advertising expenses paid through the Bank K 2,500,000 150,000 350,000 2,000,000 5,000 30,000 750.000 560,000 90,000 60,000 30,000 230,000 76,000 54,000 Period End Adjustments 1 The company charges depreciation as follows: Motor Vehicles at 20% per annum on Cost Plant and Machinery at 10% per annum on Cost Buildings are depreciated over 50 years 2 Closing Stocks as at 31st December 2021 was K150,000 Included in Selling Expenses of K30,000 there was an amount of K3,000 paid for Sundry 3 Expenses posted in error to Selling Expenses The Accruals of K198,000 as at 1st January 2021 related to salaries which amount was paid 4 through the Bank in January 2021 The Prepayment of K4,500 as at 1st January 2021 related to Electricity charges that were 5 utilized in January 2021 6 During the year an amount of K50,000 due from a customer was written off 7 An additional provision for Doubtful debts of K45,000 was required as at 31st December 2021 Required: Prepare a Statement of comprehensive income for the year ended 31st December 2021 and a Statement of Financial Position as at 31st December 2021 for GBS520 2021 Ltd