The following information was extracted from the books of James Mwangi $,$a sole trader as at $31$st August $2020..$

Shs$.$

Buildings $($ Cost$)1,800,000$

Salaries and wages $1\mathrm{.}000,600$

Office furniture $264,500$

Cash at bank $840,000$

Cash in hand $184,600$

Accounts payable $1,320,000$

Equipment $48,000$

Telephone and postage $66,400$

Stationery and postage $36,300$

Office expenses $92,300$

Carriage inwards $120,700$

Transport expenses $690,900$ Rent received $240,000$

Sales returns $245,800$

Accounts receivables $3,880,200$

Discount received $40,400$

Insurance premium $72,600$

Allowance for doubtful debts$(1$st September $2019)180,000$

Bad debts written off $80,200$

Inventory $(1$st September $2019)680,400$

Return outwards $148,200$

Sales $10,125,400$

Purchases $6,100,000$

Drawings

$850,300$

Capital

$5,000,000$

Additional information:

Inventory remaining as at $31$st August $2020.$ was valued at sh$880,600$

Insurance paid in advance as at $31$ A amounted to sh $16,600$

Depreciation is to be provided on cost as follows $$ Buildings $2\mathrm{.}5\%$ per annum $$ Equipment $20\%$ on cost$.$

$$ Office furniture $10\%$ per annum

Salaries outstanding as at $31$st August $2020.$ amounted to shs$.40,200$

Allowance for doubtful debts is to be maintained at $5\%$ of the outstanding debts

Rent receivable as at $31$st August $2020$ amounted to sh$\mathrm{.}25,500$

Mr$.$Mwangi discovered that one invoice for shs$\mathrm{.}80,000$ received from a supplier in July $2020$ has not been entered in the books.

Required

Statement for profit or loss for the year ended $31$st August $2020$

Statement of financial position as at $31$st August $2020.$