One The following trial balance was extracted from the books of Kamsi; a sole trader, as at 31 December 2019: Dr Cr N N Inventory, 1 January 2019 Bank Cash in hand Payables 481,000 151,680 14,080 336,200 Receivables 195,280 Commissions Received 70,000 Insurance 7,680 Bad Debts 1,040 Sales Returns 2,240 Purchases Returns 15,680 Sales 2,939,920 Furniture 44,160 Telephone 1,360 Rate 4,040 Salaries 113,480 Electricity 3,640 Purchases 2,739,400 Postages 5,520 Advertising 5,080 Capital 644.960 Motor Vans 37,080 Land and Building 200,000 4.006,760 4.006,760 Additional Information: i. The Inventory as at 31" December 2019 was N431,480 ii. Write off depreciation as follows: Land and Building at 5% 2 Motor van N8,000 Furniture at 10% iii. Prepaid rate is N600 while accrued telephone is N880 iv. Make provision of N12,000 for doubtful debts. You are required to prepare: a) Statement of profit or loss for the year ended 31 December 2019 b) Statement of financial position as at 31 December 2019. Question Two (15 Marks) (10 Marks) On 1 April 2017, Simkaf Limited purchased a generator for N500,000. The generator has an estimated useful life of five years with a salvage value of N100,000. Given that the accounting year end is 31 December each year and the generator was sold for N250,000 on 31 December 2018. a) Calculate the accumulated depreciation on the generator as at 31 December 2018, using the straight line method. b) Calculate the gain or loss on disposal (5 Marks) (5 Marks) Question Three Prepare Dimsy Enterprises Sales Ledger Control Account for the month of January 2018 using the following details January 1: Dr Balances in Sales Ledger Cr Balances in Sales Ledger N 21,000 500 January 31: Interest charged on overdue balance of customer 25 Cash collected from customers (including N65 bad debt recovered) 8,565 Cash returned to customers 125 Amount set off 1,250 Bad debts Bill Receivable Discount Allowed 60 Dishonoured bills receivable 50 1,035 300 Provision for doubtful debts 105 Return Inwards 132 Credit Sales 50,000 Cr Balances in Sales Ledger 1,263 (15 Marks)