62 Question 1 The following list of balances has been extracted from the books of John, a sole trader, on 31 March RM Sales 127,245 Purchases 61,420 Inventory 1 April 2011 7940 Capital 1 April 2011 25,200 Bank overdraft 2490 Cash 140 Discount received Discount allowed 2480 Return inwards 3486 Return outwards 1356 Carriage outwards 3210 Rent & insurance 8870 Allowance for doubtful debts 630 Fixtures & fittings 1900 Van 5600 Account receivable 12418 Account payable 11400 drawings 21.400 Wares & Salaries 39,200 General office expenses Additional information 319 Lesentory 31 March 2012 RM6805 2. Mes & Salaries accrued at 31 March 2012 RM3500, Office expenses owing RM16 newintedu.my estion Completion Status 2. Wapres & Salanes accrued at 31 March 2012 RM3500, Office expenses owing RM16 3. Rent prepard 31 March 2012 is RM600 4. Increase the allowance for doubtful debts by RM110 to RM740 5. Provide depreciation as follows: Fixtures and fittings RM190, Van RM1400 Required: a. Prepare a statement of profit or loss (income statement) for the year ending 31 December 2016. b. Prepare a statement of financial position as at 31 December 2016