The following trial balance has been extracted from the ledgers of Delta Limited on

31 December 2021. Prepare income statement and Statement of Financial position as of 31st December.

					DR		CR
Sales							850,000
Purchases					350,000
Discounts received							7,000
Carriage outwards					8,000
Wages and salaries					180,000
Electricity					22,000
Provision for doubtful debts as at 1 January 2021							1,000
Motor expenses					6,000
Telephone					7,000
Rent and rates					150,000
Carriage inwards					5,000
Other administrative expenses					12,000
Office Equipment, at cost					180,000
Motor vehicles, at cost					240,000
Accumulated depreciation as at 1 January 2021 Office Equipment							110,000
Accumulated depreciation as at 1 January 2021 - Motor vehicles							90,000
Inventory at 1 January 2021					45,000
Trade receivables					36,000
Trade payables							9,000
Cash in hand					19,000
Cash at bank					75,000
Ordinary shares of 1 each							300,000
Retained losses, 1 January 2021					32,000
					1,367,000		1,367,000

The following information is also relevant:

1. Closing inventory on 31 December 2021 was valued at 65,000 at cost by a physical stock-taking on that date, including deteriorated goods which cost 3,000. These goods can be sold for 1,500 if a further cost of 500 is spent on repairing them. b)The provision for doubtful debt is to be adjusted so that it is equal to 5% of the trade receivables. c)outstanding wages and salary-6000 electricity outstanding-3000, prepaid rent-6000 prepaid telephone-1000d)depreciation on office equipment-20%st line method, and on motor vehicles-25%WDV method e)Taxation of 10,000 is to be provided on the profit of the year