Q1) Following trial balance was extracted from the books of Amy who ran a textile business, at the close of business on 30th Sept 2021 Dr Cr f f Electricity 3,200 800 Bank 400 Capital 73,500 Cash 100 Accumulated Depreciation (at 1 Oct 2020): Furniture 1.800 Vehicle 7,000 Discounts 400 500 Drawings 10.000 Advertising 3,000 Furniture 12,000 Carriage Outward 900 Carriage Inward 600 General expenses 27,400 Interest on investments received Machinery 5.000 Provision for bad and doubtful debts (at 1 Oct 2020) 2.300 Purchases 645,000 Rates 6,000 Sales 820,000 Returns 4,000 2000 Stock (at 1 Oct 2020) 47,000 Telephone 1.300 Trade creditors 13.000 Trade debtors 42.000 Vehicle 35,000 Wages and salaries 77.600 920.900 920.900 Adjustments (show calculations): 1) Stock at 30 September 2021: 50,000 21 The provision for bad and doubtful debts is to be made equal to 6% of the Trade Debtors as at 30 September 2021 3) Furniture is to be depreciated at a rate of 15% on straight-line method 4) Vehicle is to be depreciated at a rate of 20% on a reducing balance basis 5) At 30 Sept 2021, amount owed/accrued for Electricity is 300 6) At 30 Sept 2021, Rates paid in advance is 1,000 Required: 1a) Prepare Amy's Statement of Profit and Loss Account for the year to 30 September 2021 (19 marks) 1b) Prepare Amy's Statement of Financial Position as at 30 September 2021 (17 marks)