Ex. 2. On 1 June 2020, Mubarak started business as a jobbing gardener with a capital of $2,000 in cash. A list of figures extracted from his records on 31 May 2021 shows the following: Purchases of seeds, plants, etc. New motor van Mowing machine Cultivator Motor van expenses Rent of garage Paid to wife for clerical work Insurance Private expenses paid from bank Cash in hand and bank Cash received from customers Capital at the start of the year Inventories of seeds, plants, etc. at the end of the year 700 1.100 70 250 300 200 500 200 1.500 180 3,000 2,000 100 (a) Prepare an income statement to show Mubarak's profit or loss for the year ended 31 May 2021, (b) Prepare a balance sheet at 31 May 2021. 1