Please I posted these question times for assistance to enable me under the solution but no one attached the question to date.

Mr. Mangotey separated from his employers, Excellent Breweries itd on 31 December 2005 on voluntary redundancy and decided to use his terminal benefits as a venture capital to start a business of selling LG Generators of a standard type. He started the business with initial capital of c80,000 on January 1, 2006. He arranged with Somotex to supply him with the generators at a unit price of c360. He decided to sell mainly an cash basis for c500. He however agreed to sell to friends and relatives an a monthly credit basis at the same arice of 6500 . Effective 1* September 2006, Mr. Mangotey decided to introduce hire purchase sales to meet the request fram prospective custamers in formal emplopment. He required a deposit of 120 followed by 12 monthly installments of c40 each. All hire purchase sales are made in the first week of the month and the first installment is payable by the end of the month. During 2006, Mr Mangotey bought 600 generators from Somotex and sold 420 for cash and on normal monthly credit terms. Hire purchase sales were 10 in Septernber, 24 in October, 40 in November and 50 in December but 4 of those sold in October were repossessed in December after deposit and one month installment had been paid in each case. Each of the repossessed generators were valued to have a net realizable value of c300. Mc. Mangotey, nat being conversant with accounting treatment of hire purchase transactions, credited all sales to sales account and debited same to either cash book or debtors. The trial balance of Mr. Mangotey Enterprise as at 31" December 2006 was as follows: Dr Cr GHS GHS Required Prepare the income statement of Mr. Mangotey Enterprise for the year ended 31 December 2006 and balance sheet as at 31A December 2006