C: Long Question (35 marks) CI The following trial balance was extracted from the books of Cyrus Company, a sole trader, at 31 March 2022: Dr Cr $ S Sales Bank 987,114 556.110 Bank Overdraft 2,260 Discounts Allowed 3,483 Interest Income 2,230 Purchases 338,119 Computer Equipment at cost 85,400 Motor Vehicles at cost 98,100 Accumulated Depreciation, at 1 April 2021: Computer Equipment 6,320 Motor Vehicles 4,770 Salaries 76,640 Transportation Expenses 5,100 Inventory at 1 April 2021 11,354 Returns Inwards and Returns Outwards 3,754 2,334 Carriage Inwards 1,765 Carriage Outwards 3,008 Allowance for Doubtful Debts, at 1 April 2021 2,450 Motor Expenses 4,460 Entertainment Expenses 2,179 Bad Debts 894 Capital 233,381 Trade Receivables and Trade Payables Drawings 67,190 21,462 4,765 1,262,321 1,262,321 The following additional information is available: (1) Accruals: Motor Expenses $680; Salaries $9,960. (2) Inventory at 31 March 2022 $16,180. (3) Entertainment Expenses prepaid $1,260. (4) $6,790 due from trade receivables to be written off as bad debts. Page 8 of 18 BUS3701 Accounting Fundamentals AY 2021/22 Examination-Semester 3-Re-study Class (5) Allowance for doubtful debts to be adjusted to $5,640. (6) The depreciation policy for non-current assets is as follows: i) ii) Motor Vehicles: 10% per annum on reducing balance Computer Equipment: 15% per annum on cost Required: Prepare, for Cyrus Company, (a) a Statement of comprehensive income for the year ended 31 March 2022. (20 marks) (b) a Statement of financial position as at 31 March 2022. (15 marks) (Total 35 marks) ***** End of Section C ***** -END OF PAPER