Q.3. (a) If the cost of the asset is Rs 10,000 and its effective life is 5 years, calculate the amount of depreciation to be written off each year under Sum of Years Digits Method. (b) The owner of a small business has asked you to prepare a statement that will show him the Cash generated from or used up in operations. The following information is provided for your reference. 2019 2020 Debtors 50000 47000 Bills receivable 10000 12500 Creditors 20000 25000 Bills payable 8000 6000 Outstanding expenses 1000 1200 Prepaid expenses 800 700 Accrued income 600 750 Income received in advance 300 250 Profit made during the year 1,30,000