John runs a stall named as Family shop. The trial balance for his business as at 31 December 2014 is given below: Debit ($) Credit ($) 26110 43380 44000 26000 76000 4290 36000 790 Acc. Payable Acc. Receivable Accumulated for depreciation - Vehicle Accumulated for depreciation -Shop fitting Bank loan (repayable in year 2018) Bank overdraft Capital on 1st jan 2013 Cash Drawings Insurance expenses Inventory at 1st Jan 2014 Investment Vehicle Purchases Rent Return Inwards Sales Shop fitting Utilities expenses 34000 2500 6000 18900 120000 118000 24000 2210 241000 82000 1620 $453400 $453400 On 31st dec 2014: Inventory amounting to $8210 Rent of $1200 and utilities 240 to be accrued Prepaid insurance of $600 The shop fitting is to be depreciated at 20% on cost, while depreciation of vehicle is calculated on reducing balance method. Rate of depreciation for motor vehicle is 30%. Bad debt of $1000 to be write-off from accounts receivable. The provision for bad debts is fixed at 4% of debtor's balances Required: a) Prepare Statement of Profit and Loss for the year ended 31st dec 2014 b) Prepare Statement of Financial Position for the year ended 31st dec 2014