QUESTION THREE (20 MARKS) The following trial balance was extracted from the books of Rydone, a sole trader, at 31^st December 2021: Ksh Ksh. Provision for bad debts General Expenses Bank balances Motor van at cost/Provision for depreciation Proceeds on sale of van Motor expenses Freehold premises at cost Rent received Provision for depreciation on buildings The following matters are to be taken in to account: 1. Stock in trade at 31^st December 2021 was Ksh . 9.884 2. Rates paid in advance at 31^st December 2021, Ksh.40 3. Rent receivable due at 31^st December 2021, Ksh.250 4. Lighting and heating due at 31^st December 2021, sh.85 5. Provision for doubtful debts to be increased to Ksh.388 6. Included in the amount for insurance Ksh.172 is an item for Ksh82 for motor insurance and this amount should be transferred to motor expenses. 7. Depreciation has been and is to be charged on vans at an annual rate of 20% on cost. 8. Depreciate buildings Ksh.500 9.On 1^st January 2021 a van which had been purchased for Ksh.1,000 on 1^st January 2018 was sold for Ksh250 . The only record of matter is the credit of Ksh.250 to "Proceeds of sale on van" account. Required: A Statement of Profit and Loss for the year ended 31^st December 2021 and a Statement of Financial Position as at date using vertical format.