The following balances were obtained from the books of KLM plc as at December $31,2018$:

Additional information:

a$.$ Provide for depreciation as follows: fixtures and fittings $5\%$ on cost$,$ and motor

vehicles $10\%$ on cost$.$ Depreciation charges should be applied equally between

selling costs and administration expenses

b$.$ Wages and salaries is owing by $$10,000,$ and insurance is owing by $$5,000$

c$.$ The total preference share dividend is to be honoured

d$.$ The following expenses must be appropriated:

e$.$ Goodwill impairment was estimated to be $$30,000$

f$.$ Corporation tax is estimated at $$25,000$

g$.$ Transfer $$25,000$ to general reserves

Required:

Prepare the following financial statements for the year:

i$.$ Statement of profit or loss

ii$.$ Statement of changes in equity

iii. Statement of financial position