QUESTION 2 (LO2, LO3 and LO4) You have been provided with the below information for Fixing Ltd: Trial Balance as at 31 December 2023 - At the end of the year fixtures and fittings at a cost of 120k were scrapped. The accumulated depreciation associated with these assets was 90k. - At the end of the year motor vehicles with a cost of 70k were sold for 10k, the accumulated depreciation on these vehicles was 50k. The sales proceeds have not yet been received and have not been accounted for. - Of the land and buildings figure 3m relates to land. - The allowance for receivables is to be maintained at 5% of the closing receivables balance. - Closing inventory is 35k. - An electricity bill for 3k covering the quarter ended 31 December 203 was received on 2 January 2024. This has not been included in the accounts. - Public liability insurance of 18k for the 12 months to 30 April 2024 was paid on 1 May 2023. Tax to be accrued for the period is f180k. Prepare the statement of profit or loss and the statement of financial position for Fixing Ltd as at 31 December 2023. (Total 20 marks) Additional information - Depreciation is treated as an operating expense, a full year is charged in the year of acquisition and none in the year of disposal, the following rates apply: Buildings 5% pa straight line; Fixtures and fittings 20% pa reducing balance; Motor vehicles 25% pa reducing balance