Section B The following trial balance was extracted from the books of Sunny Plc at 31 December 2020 Debt Credit Coo Sales 555.150 Purchases 317000 inventory at 1 January 2020 22.300 Distribution costs Administrative expenses 81230 Directorio 74 Autre B. Retained comings at 1 any 2000 9.37 Property 195.000 Equipment -cost 70.000 Equipment accumulated depreciation 1 Jan 2020 27.500 Motor vehicles Motor vehicle Cated depreciations 1 an 2028 2250 Debenture intered paid Ordinary dividend paid 4.500 Preference dividend paid 1.500 Trade receivables Allowance for recoverable dubits 37000 Payable due within one year 14200 Ordinary El shares 90000 10% redeemable preference shares of each 30.000 5% Debentures 2030 50.000 Share premium 63.000 Bank 34.110 1970 $1,970 The following information is also available: The company's inventory at 31 December 2020 was 22,000,000 at cost and had a net realisable value of 22,500,000 Equipment is to be depreciated at 20% on cost, and motor vehicles are to be depreciated at 25% using the reducing balance method Vehicles are used for distribution only Equipment is used 60% in production and 40% in administration All other expenses are considered to be administration The corporation tax liability for the year ended 31 December 2020 is expected to be 15,000,000. At 31 December 2020 there were the following accruals and prepayments: Prepayments Accrual CODO 6000 Distribution costs 3.000.000 Administrative expenses 6.000 3,000 6. 7. A receivable balance of 1,000,000 is not recoverable. The allowance for irrecoverable debts is to be adjusted to 7% of remaining trade receivables. The final preference dividend and the outstanding 8 The company's inventory at 31 December 2020 was 22,000,000 at cost and had a net realisable value of 22,500,000 2 Equipment is to be depreciated at 20% on cost, and motor vehicles are to be depreciated at 25% using the reducing balance method. Vehicles are used for distribution only. Equipment is used 60% in production and 40% in administration. All other expenses are considered to be administration. 4. The corporation tax liability for the year ended 31 December 2020 is expected to be 15,000,000 At 31 December 2020 there were the following accruals and prepayments: Prepayments Accruals 000 000 Distribution costs 3.000 4.000 Administrative expenses 6.000 3,000 6. A receivable balance of 1,000,000 is not recoverable. 7. The allowance for irrecoverable debts is to be adjusted to 7% of remaining trade receivables. 8. The final preference dividend and the outstanding debenture interest have not yet been paid. Required b) Prepare a 'T' account showing retained earnings for the year