The following trial balance was extracted from the ledgers of Selly enterprise as at 31 December 2020. Shs Shs Buildings at cost 240,000 Plant at cost 160,000 Accumulated depreciation 01/01/2020 On buildings 40,000 On plant 76,000 Purchases and sales 500,000 808,800 Inventories 01/01/2020 100,000 Discount allowed and Discount received 36,000 9,600 Returns inwards and returns outwards 4,400 30,000 Wages and salaries 117,600 Bad debts written off 9,200 Other expenses 45,600 Receivables and payables 76,000 72,000 Bank and cash 3,200 Drawings 48,000 Allowance for receivables 1,000 capital 302,600 1,340,000 1,340,000 The following information is also given at the end of the year: (a) Closing inventories are Shs 84,000. (b) Wages and salaries accrued amount to Shs 1,600. (c) Other expenses prepaid amount to Shs 600. (d) The allowance for receivables is to be adjusted to 2% of receivables. (e) Depreciation for the year is to be calculated as: 2.5% per annum straight line on buildings; 25% per annum reducing balance on plant. Required: (a) Prepare the income statement for the year ended 31 December 2020. (15 Marks) (b) Prepare the Statement of Financial Position as at 31 December 2020. (5 Marks)