The following trial balance was extracted from the books of Kopesha Hotel Ltd for the year ended 31 December, 2015.

	Note	Dr	Cr
		Shs 000	Shs 000
Land & buildings	1	1,200,000
Motor vehicles		300,000
Accounts payable			90,000
23%5-year bank loan			100,000
Ordinary share capital			2,000,000
Furniture & fittings		350,000
Upkeep and service costs		210,000
Accounts receivable		150,000
Bank		600,000
Retained earnings			770,100
Gym equipment at cost		150,000
Appliance, cutlery & glassware		190,000
Utilities	6	70,000
Sales			558,800
Other income	3		300,600
Repairs & maintenance		95,000
Purchases		350,000
Salaries & wages		150,000
Stationery	4	12,000
Interest on loan	5	11,500
Rental income	2	_______	19,000
		3,838,500	3,838,500

Additional information:

1. The building was constructed at a cost of Shs 800 million and put to use on 1 January, 2015.
2. Rental income Shs 2 million was outstanding at 31 December, 2015.
3. Included in other income was deposit from Rabera Ltds Shs 15 million for a 2 day workshop that was slated for 15 February, 2016.
4. Stationery Shs 500,000 was unused at the end of the year.
5. The remaining interest on the bank loan was accrued.
6. Included in utilities is electricity expense Shs 1 million relating to the year ending 31 December, 2016.
7. The useful life of the gym equipment is 10 years after which it is expected to have nil value.
8. Depreciation is to be provided for at the following rates per annum on cost:

Asset Rate

(%)

Buildings 2

Motor vehicles 20 Furniture & 20

fittings

9. Inventory stood at Shs 25.3 million at 31 December, 2015.

Required:

a)Prepare for Kopesha Hotel Ltd, a statement of:

Profit or loss for the year ended 31 December, 2015.

(b) Financial position as at 31 December, 2015.