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Judy Kay, a Partnership Organisation having trial balance for December 2022:

The following information was obtained after the trial balance had been prepared:

1. 1.Stock as of 31^st December 2022 is £3,600
2. 2. Furniture is to be depreciated at a rate of 15 per cent on cost
3. 3.As of 31^st December 2022, Judy Kay owed £600 for telephone expenses, and insurance had been prepaid by £240
4. 4.Bad debts of £1,200 should be written off and it is Judy Kay’s policy to maintain a provision for doubtful debts of 5% of remaining debtors (after bad debts have been written off)
5. 5.Judy Kay have decided to charge interest on drawings at 5 per cent per annum, irrespective of when the drawing occur. Kay withdrew £1,200 from the business for private use on 1^st November 2022.
6. 
   
7. Required:

a. Prepare the Statement of Profit and Loss (Income Statement)

b. Statement of Financial Position (Balance Sheet)

Judy Kay Partnership's Trial Balance as of 31st December 2022 Capital: Judy Kay Cash Trade creditors Trade debtors Fumiture at cost General expenses Insurance Purchases Sales Telephone expenses Total 1,680 6,000 9,600 16,800 2,400 25,200 1,800 63,480 3,600 3,600 8,280 48,000 63,480