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The trial balance of Leaders International Limited, a company which sells plastic containers, as at 31 March 2018, is given below

Allowance for receivables		3,000
Salaries and wages	80,100
Inventory at 1 April 2017	36,120
Dividend paid	4,200
Purchases and Sales Administrative expenses	442,618 46,580	747,253
Distribution costs General Reserve Land at cost	33,115 110,000	4,800
Motor vehicles at cost	32,860
Motor vehicles accumulated depreciation at 1 April 2017		17,450
1 Ordinary Shares		50,000
Retained Earnings Buildings at cost	120,000	49,690
Buildings accumulated depreciation at 1 April 2017		18,380
Bank Share Premium	32,350	2,700
5% Loan notes Loan note interest	2,000	90,000
Trade Receivables	77,340
Trade Payables		34,010
	1,017,283	1,017,283

The following information should also be considered regarding Leaders International Limited:

Motor Vehicles are depreciated at 20% per annum using the reducing balance method.

i) Motor Vehicles are depreciated at 20% per annum using the reducing balance method.

ii) Buildings are to be depreciated at 3% per annum using the straight-line method.

iii) The closing inventory was valued at 54,890.

iv) Corporation tax on profits was estimated at 14,950.

v) Administrative expenses accrued were 3,600.

vi) A customer who owed 5,200 has gone bankrupt and Leaders International Limited has decided to treat the amount as a bad debt.

vii) Distribution costs prepaid amounted to 1,830.

viii) The allowance for receivables is to be adjusted to represent 5% of the trade receivables.

Required:

Prepare the following statements for Leaders International Limited:

a) Income Statement for the year ended 31^st March 2018 (25 marks) b) Statement of Financial Position as at 31^st March 2018 (25 marks)

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