DUE DATE: Assignment 2 Question 1 The following trial balance was extracted from the books of P Brown on 31 December 2017 22 MARCH 2018 Debit Credit Capital Inventory 1/01/2017 Net Purchases Net Sales Import duties on purchases Discount allowed and received Salaries Accounts receivable Accounts payable Bad debts written off Allowance for doubtful debts Premises Motor Vehicles Furniture and Fittings at cost Provision for depreciation 1 050 000 359 625 3 246 339 5 545 050 859 161 174 858 575 142 643 125 60 114 690 807 68 250 32 154 954 450 283 500 91 860 Motor vehicle Furniture and Fittings 73 500 28 875 109 500 Rent income Rates and insurance Carriage on sales 5 year loan from FNB Cash on hand Stationery Cash at bank 74 565 120 750 300 000 42 525 388 236 7 890 000 7890 000 Additional information () Closing inventory on 31 December 2017 was valued at NS406 350 (ii) Rates unpaid amounting to N$9 750 and rent income not yet received N$10 500 are to be taken into account (i Insurance premiums amounting to N$15 750 relate to the next financial year (iv) Inventory of unused stationery on 31 December 2017 was valued at N$4 500 (v) No record has been made of goods costing N$26 250 withdrawn by the owner for ersonal usE (vi) Adjust the allowance for doubtful debts to 8% of accounts receivable (vii) The long term loan from FNB was obtained on 1 July 2017 and is subject to 8.75% (viii) Provide 15% depreciation on the net book value of the motor vehicle and 5% on the Required p.a. interest. This interest has not yet been taken into account cost of furniture and fittings. (a) Draw up a statement of profit or loss and other comprehensive income for the (b)A post-closing trial balance as at 31 December 2017. year ended 31 December 2017 [30 marks] [15 marks] [35 marks] (c) A statement of financial position as at 31 December 2017 Both (a) and (c) must be in vertical format. Show all workings