12. The following trial balance has been extracted from the ledger of Y. Sean, a sole trader. Debit Credit 17,070 7,700 16,800 111,200 3,200 22,800 166,100 2,300 8,000 4,500 640 Capital: 1 January 2021 Inventory: 1 January 2021 Accounts receivable and accounts payable Purchases and sales Discounts Equipment at cost accumulated depreciation Allowance for expected credit losses Cash at bank Cash in hand Carriage outwards Drawings Rent Returns inwards Salaries Subscriptions General expenses 9,500 330 3,700 12,000 15,600 3,100 19,200 1,200 1,880 213,410 213,410 (ii) The following additional information as at 31 December 2020 is available: (i) Inventory at the close of business was valued at 4,900. Equipment to be depreciated at 25% per annum using the straight line method. (iii) The allowance for expected credit losses to be increased to 5% of the accounts receivable. (iv) Advertising accrued was 1,600. (v) Subscriptions have been prepaid by 400. Required: (a) Prepare a statement of profit or loss for the year ended 31 December 2021. (13 marks) (b) Prepare a statement of financial position as at 31 December 2021. (11 marks)