The following balances were extracted from the books of Mali Mingi Limited as at $31$ August $2021$:

$\backslash$table$[[$Particulars$,$KES $\text{'}000],[$Capital: Authorized,$3,500],[$Issued and fully paid ordinary shares of KES. $20$ each,$2,500],[8\%$ redeemable preference shares of KES. $20$ each,$600],[9\%$ debentures,$800],[$Retained earnings as at $1$ September $2020,1,990],[$Land$,200],[$Buildings at cost$,1,800],[$Provision for depreciation$-$buildings as at $1$ September $2020,600],[$Fixtures and fittings at cost$,4,000],[$Sales$,5,060],[$Inventory as at $1$ September $2020,900],[$Provision for depreciation$-$fixtures and fittings as at $1$ September $2020,3,050],[$Establishment expenses,$270],[$Administration expenses,$600],[$Discounts allowed,$60],[$Discounts received,$40],[$Allowance for doubtful debts,$40],[$Trade recivables,$1,290],[$Trade payables,$500],[$Bank balance,$760]]$

Additional information:

Depreciation is to be provided as follows:

Building $2\mathrm{.}5\%$ p$.$a$.$ on cost

Fixtures and fittings $,10\%$ p$.$a$.$ on cost

The company's policy is to provide depreciation in the year of acquisition and none in the year of disposal.

The allowance for doubtful debts is to be increased to KES. $64,500$

The interest on debentures for the year ended $31$ August $2021$ has been paid. The amount was correctly posted in the cashbook but wrongly debited to the trade receivables.

The following information is provided on the value of closing inventory as at $31$ August $2021$:

Net realizable value

KES. $1,380,000$

Cost to the company

KES. $1,300,000$

Selling price

KES. $1,900,000$

During the year ended $31$ August $2021,$ some items of fixtures and fittings were sold for KES. $60,000.$ The amount received was erroneously credited to sales. The items disposed of had cost the company KES. $200,000$ and had an accumulated depreciation of Kshs $160,000$ as at $1^{st}$ September $2020.$

An ordinary dividend of KES. $2$ per share has been declared to be paid. They have also declared to pay preference dividend.

Corporate tax rate is $30\%.$

The directors have agreed to transfer KES. $100,000$ to the general reserve.

Required:

$($i$)$ Prepare Statement of Profit or Loss and Other Comprehensive Income for the year ended $31$ August $2021.(12$ marks$)$

$3$

$($ii$)$ Prepare Statement of financial position $31$ August $2021.(8$ marks$)$