The following is the trial balance of John Ltd as on 31 December 2021:
Share capital issued: ordinary shares 20 thebe 380,000
Receivables and Payables 170,600 75,900
Inventory 31 December 2020 81,300
Bank 17,900
Premises at cost 265,000
Machinery at cost 109,100
Motor vehicles at cost 34,700
Premises: Accumulated depreciation 31 December 2020 60,000
Machinery: Accumulated depreciation 31 December 2020 41,400
Motor vehicles: Accumulated depreciation 31 December 2020 18,200
Sales 976,600
Purchases 623,800
Motor expenses 5,300
Repairs 4,600
Sundry expenses 2,900
Wages and salaries 246,500
Director's remuneration 82,600
Retained earnings as at 31 December 2021 32,200
General reserve 60,000
Additional information:
i. Authorized share capital: P400,000 in ordinary shares of 20 thebe.
ii. Stock at 31 December 2020 is P100,000.
iii. Motor expenses owing P280.
iv. Ordinary dividend proposed of 1 per cent of share capital.
v. Transfer P5,500 to general reserve.
vi. Provide for depreciation using straight-line method: motor vehicles and machinery 20%, premises 5%.
REQUIRED:
Prepare the Statement of income for the year ended 31 December 2021, and a statement of financial position as at that date.