The following information has been extracted from the books of Tonson, a limited liability company, as at 31 October 20X6. Cash Insurance Inventory at 1 November 20X5 General expenses Energy expenses Marketing expenses Wages and salaries Discounts received Share premium account Retained earnings at 1 November 20X5 Allowance for receivables at 1 November 20X5 Sales revenue Telephone expenses Property expenses Bank Returns inward Trade payables Loan note interest Trade receivables Purchases 7% loan notes Irrecoverable debts $1 ordinary shares Accumulated depreciation at 1 November 20X5 Buildings Motor Vehicles Furniture and equipment Land at cost Buildings at cost Motor vehicles at cost Furniture and equipment at cost Dr $'000 Cr $'000 15 75 350 60 66 50 675 50 200 315 40 5,780 80 100 5 94 95 290 33 900 3,570 470 150 1,800 360 80 420 740 1,500 240 1,200 9,899 9,899 You have also been provided with the following information: (a) Inventory at 31 October 20X6 was valued at $275,000 based on its original cost. However, $45,000 of this inventory has been in the warehouse for over two years and the directors have agreed to sell it in November 20X6 for a cash price of $20,000. (b) The marketing expenses include $5,000 which relates to November 20X6. (c) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables. (d) There are wages and salaries outstanding of $40,000 for the year ended 31 October 20X6. (e) (f) Buildings are depreciated at 5% of cost. At 31 October 20X6 the buildings were professionally valued at $1,800,000 and the directors wish this valuation to be incorporated into the financial statements. Depreciation is to be charged as follows: (i) Motor vehicles at 20% of carrying amount (ii) Furniture and equipment at 20% of cost (g) No dividends have been paid or declared. (h) Tax of $150,000 is to be provided for the year. (i) During October 20X6 a bonus issue of one for ten shares was made to ordinary shareholders. This has not been entered into the books. The share premium account was used for this purpose. Required Prepare the following statements, for internal use: 30 marks (a) The statement of profit or loss for the year ended 31 October 20X6 (b) The statement of financial position as at 31 October 20X6 30 marks