Dr Balance sheet account section R Cr R Capital 500 000 Drawings 23 700 Loan from ABC Bank @ 22% p.a 150 000 Land & Building @ cost 200 000 Plant & Machinery @ cost 120 000 Accumulated depreciation . Plant & Machinery 52 500 Motor vehicles @ cost 130 000 Accumulated depreciation - Motor vehicles 24 800 Fixed deposit - Bull Bank @ 15% p.a 1 14 000 Accounts receivable 125 000 Allowance for credit losses 5 000 Bank 302 300 Petty cash 10 000 Inventory @ 1 Jan 2019 1 10 000 Accounts payable 79 000 Nominal account section Sales 975 000 Sales returns 27 000 Insurance 26 000 Water & Electricity 30 000 Salaries & Wages 190 000 Telephone 15 950 Interest expense 33 000 Stationery 5 000 Commissioned received 24 000 Purchases 340 000 Petrol 11 900 Motor vehicle repairs & maintenance 31 000 Rent income 26 000 Interest income 8 550 1 844 850 1 844 850Additional information: 1. A physical inventory count held on 31 December 2019 revealed the following: . Inventory on hand R108 900 . Stationery on hand R500 2. Insurance for the month of January 2020 has already been paid for. 3. The water and electricity bill for November & December 2019 was received on the 30th of December 2019 and no payment was made yet. 4. The telephone bill for December was only received on the 29th and no payment has been made. 5. Rental income for January 2020 was received on the 30th of December 2019. 6. Interest income is received in June and December each year. The interest income for December is still outstanding. 7. T Thomas is a debtor has been declared insolvent. His debt of R2 000 must be written off. 8. Allowance for credit losses must be adjusted to 7% of outstanding debts. 9. Depreciation for the year must be accounted for as follows: . Plant & Machinery 20% (straight line method) . Motor Vehicles 15% (reducing balance method) Required: 1.1. Prepare the statement of profit or loss and other comprehensive income for the year ended 31 December 2019. (27 Marks) 1.2. Prepare the statement of financial position for the year ended 31 December 2019. (Together with the relevant notes). (23 Marks) NB: Show all your calculations END OF ASSIGNMENT