Omar Faruk is the owner of Faruk Varieties Store. He does not maintain proper books of accounts. Faruk had Tk. 15, 000 as cash balance at the beginning of the year. The following collected information is concerned with his business during the year 2021:

Particulars	01.01.2021	31.12.2021
Debtors	18 000	25 000
Stock	9 800	13 200
Furniture	1 500	1 500
Creditors	6 000	4 500
Mortgage Payable	10,000	10,000

Analysis of the accounts also reveal the following data:

Cash collected from debtors Salaries Rent Office expenses Drawings Additional capital introduced Bad debts

30 400 6 000 750 900 1 500 1 000 100

Cash paid to creditors Cash sales Discount received Discount allowed Returns inward Return outwards Cash purchase

22 000 750 350 150 500 400 2500

During the year, Mr. Omar Faruk was asked by the Income Tax Authority to submit his financial statements as per the International Accounting Standard (IAS) 01 as he fulfills some of the requirements of ITO 1984. Due to the prevailing situation, Mr. Omar asks your assistance to prepare the financial statements as per the IAS 01.

Requirements:

1. Explain the problems of his existing accounting system. You can use the information provided above if necessary. [2 marks]
2. Prepare Statement of Comprehensive Income for the year ended 31^st December 2021 for Mr. Omar Faruk as per the IAS 01.