The following trial balance was extracted from the books of Bidii Trading Co. Ltd as at

31^st December 2021.

	Dr. (shs)	Cr. (shs)
Office equipment at cost	400,000
Sales		4,800,000
Carriage inwards	60,000
Furniture at cost	1,520,000
Building at cost	2,200,000
Provision for depreciation building (1/1/21)		220,000
Returns outwards		85,000
Creditors		1,341,000
Motor vehicle at cost	800,000
Provision for depreciation motor vehicle (1/1/21)		150,000
Debtors	510,000
Opening stock (1/1/21)	1,280,000
Office expenses	40,000
10% debentures		300,000
Purchases	2,140,000
Telephone expenses	60,000
Bank	715,000
Ordinary share capital		1,800,000
8% preference share capital		1,400,000
Rent income		214,000
Insurance expenses	140,000
Electricity expense	310,000
Provision for doubtful debts (1/1/01)		80,000
Debenture interest	30,000
Motor expenses	45,000
Returns inwards	120,000
Stationery expenses	20,000
	10,390,000	10,390,000

Additional information:

Value of the closing stock as at 31/12/21 was, shs342,000

Bad debts to be written off shs50,000

Provision for doubtful debts to be 10% of the remaining debtors

Buildings to be depreciated at a rate of 10% p.a. on cost

Motor vehicles to be depreciated at a rate of 15% p.a. on net book value

Office equipment and furniture to be depreciated at a rate of 10% p.a. on cost

Rent income received in advance shs42,000

Provision is to be made for:

- Corporation tax at 20% of the net profit

- Directors fees Sh. 100,000

- Audit fees Sh. 150,000

Directors have proposed that:

- Dividend to ordinary shareholders be paid at a rate of 12%

- Dividend to preference shareholders be paid

- 10% of the net profit be transferred to general reserve.

Required:

a. Using the vertical format, prepare,

i. Comprehensive Income and appropriation statement for the year ended 31^st December 2021

ii. Statement of financial position as at 31^st December 2021