Question $1(25$ marks$)$

Use the following information to answer questions that follow. The following

information was found in Boago$$s books in April $2015$

Pula

Sales $430,000$

Returns Inwards $15,000$

Purchases $200,000$

Returns Outwards $21,400$

Buildings and premises $226,000$

Vehicle $125,000$

Fixtures and Fittings $25,000$

Opening inventory $30,000$

Accounts receivable $40,000$

Accounts payable $60,000$

Long term loan $90,000$

Capital $230,000$

Bank Overdraft $20,000$

Cash in hand $10,000$

Sundry expenses $12,000$

Heating and Lighting $9,000$

Salaries $95,000$

Commission receivable $1,500$

Commission payable $2,500$

Interest receivable $1,200$

Vehicle Maintenance $8,000$

Stationery $9,500$

Provision for depreciation: Buildings and premises $22,600$

Vehicle $20,000$

Fixtures and Fittings $4,500$

Rent $25,000$

Provision for bad and doubtful debts $1,600$

Travelling expenses $7,000$

Additional information:

a$.$ Closing inventory P$30,000$

b$.$ Heating and Lighting P$500$ was outstanding at the end of the financial year.

c$.$ Salaries P$15,000$ was paid in advance

d$.$ Depreciate non current assets by $25\%$ using the reducing balance method.

e$.$ Provision for doubtful debts is $1\mathrm{.}5\%$ of accounts receivable.

f$.$ Accounts payable P$16,700$ was omitted from the books.

g$.$ Capital amounting to P$10,000$ was correctly recorded in the Bank account but was

not recorded in the Capital account.

Required:

a$.$ Prepare the Statement of Comprehensive Income for the year ended $31$st

December $2015.(13$ marks$)$

b$.$ Prepare the Statement of Financial Position as at $31$st December $2015.$

$(12$ marks$)$