The following list of account balances have been provided by Ngolide Plc on 31 December 2013, which is the end of the company's accounting period: K K Share capital 470,000 Retained earnings-1 January 2013 413,500 Land at cost 340,500 Buildings at cost 200,000 Accumulated depreciation - buildings - 1 January 2013 5,000 Factory plant and equipment at cost 100,000 Accumulated depreciation - Plant and equipment - 1 January 2013 78,500 Furniture and fittings at cost 120,000 Accumulated depreciation - furniture and fittings - 1 January 2013 10,750 Motor vehicles at cost 70,000 Accumulated depreciation-motor vehicles 20,000 10% loan notes 100,000 Trade receivables/payables 162,630 152,500 Bank overdraft Inventories at cost- 1 January 2013 Purchases raw materials Carriage raw materials - Manufacturing wages Manufacturing overheads Cash Sales Administrative expenses Selling and distribution expenses Legal and professional fees 6,250 425,650 650, 600 10, 500 250,000 125,000 5,120 1,532,500 108, 100 166,000 54,900 Additional information 1. Inventories at 31st December 2013 were: Raw Materials Finished goods Work in progress 2,789,000 2,789,000 K 60,600 65,350 40, 500 2. Depreciation for the year is to be charged as follows: Plant and equipment Buildings Furniture and fittings Motor vehicles 12% on reducing balance-charged to production 10% on cost charged to administration 8% on reducing balance charged to selling and distribution 30% on reducing balance charged to production 3. A transfer to general reserve of K 60, 000 is required as at 31st December 2013. 4. The buildings are to be revalued to K180, 000 as at 31 December 2013. 5. 33% of administration expenses in the trial balance relate to rental payment for one year to June 2014. 6. Goodwill has been impaired by K10,000. 7. Provision is to be made for a full year's interest on loan notes and 40% tax on profit before tax. Required Prepare the complete set of financial statements for Ngolide Plc for the year to 31st December 2013. 40 Marks