1 The following Trial Balance relates to M.M. Bibsy for the year ending 31st December 2018: DR CR 18,087.50 9,525 4,000 + 1,750 3000 1200 84,216 Capital Drawings Vehicle at cost Accumulated/provision for depreciation - vehicle Shop fittings at cost Accumulated/provision for depreciation - shopfitting Purchases & Sales Opening inventory Trade receivables & Payables Sales & Purchase returns Discount allowed & Received Wages Vehicle expense Rent Heating and light Telephone General expenses Irrecoverable debt written off Provision for doubtful debts Cash Bank Total 3,393 618.50 121.50 52,620 4,713.50 1,920 487.50 63.50 15,420.50 510.50 4,398 920 177.50 876 42.5 75 77.50 10,709.50 109,461.50 109.461.50 The following additional information is available relating to M.M. Bibsy: 1. depreciation is charged using the reducing balance method at the rates of 25% on vehicle and 10%, on shop fittings using the straight-line method 2. the provision for doubtful debt is to equal 2% of trade receivables 3. Inventory at 31st December 2018 was valued at 5,758.50 4. Vehicle expenses owing 27.50 and rent prepaid $137.50 Required: Prepare an income statement of M.M. Bibsy for the year ending 31st December 2018 and a Statement of Financial Position