The Trial balance of B$-$JO Ltd as at $31$ December $2021$ was as follows:

Turnover

Purchases

Inventory at $1$ January, $2021$

Distributioncosts

Administration expenses

Returns inwards

Receivables

Payables

Returns outwards

Carriage inwards

Cash at bank

Carriage outwards

Ordinary shares $50$ ngwee per share

$10\%$ irredeemable preference shares $K1$

$10\%$ loan notes

Non$-$current as sets at cost

Accumulated depreciation $1$ January, $2021$

Share premium

Retained profits at $1$ January, $2021$

Loan note Interest

Interim preference dividend

Interim ordinary dividend

The following is to be taken into account.

The following is to be taken into account.

The following is to be taken into account.

i$)$ The depreciation is charged on non$-$current as sets at the rate of $20\%$ on a reducing

balance basis per year. Depreciation is charged to the administrative expenses. Corporate

tax payable is at the rate of $30\%$ per year.

ii$)$ Rent paid in advance amounting to K$5,000$ was charged to administrative expenses.

iii$)$ There is an outstanding transport cost amounting to $K4,000.$ Transport costs are charged

to the distribution costs.

iv$)$ Final ordinary dividend of $20$ ngwee per share is proposed.

v$)$ Closing inventory is $K40,000.$

Required:

a$)$ Prepare the statement of profit or loss and other comprehensive income for the year

ended ${31}^{si}$ December $2021.$

b$)$ Prepare the statement of Financial Positionas at ${31}^{***s}$ December, $2021.$