Question 1 (50 marks) George has been trading stylish sport accessories for some years. The following list of balances has been extracted from his ledger as at December 31, 2020. Advertising Bank interest expenses (included bank loan interest) Cash in hand Creditors Debtors Electricity paid Fixtures & fittings at cost Accumulated depreciation - Fixtures & fitting at January 1, 2020 Office equipment at cost Accumulated depreciation - Office equipment at January 1, 2020 Postages and stationery Purchases Rent, rates and insurance Salaries and wages Sales Share capital Stock at January 1, 2020 5 years bank loan at interest rate of 20% per annum (S) 254,000 24,500 700 88,200 64,500 42,000 63,000 12,600 35,000 3,500 5,600 750,000 87,500 262,500 1,050,000 400,000 35,000 70,000 The following additional information as at December 31, 2020 includes: 1. Stock of sport accessories at December 31, 2020 was valued at $350,000. 2. An electricity bill of $5,700 for October 2020 was received. This bill has not yet been settled until February 2021. 3. Rates was paid in advance for January to March 2021 - $8,400. A customer has failed to make payment of $10,500 for a long time. It deemed as bad debts as at December 31, 2020. 5. Depreciation of fixture & fittings: 20% per annum on straight line basis. 6. Depreciation of office equipment: 10% per annum on straight line basis. 4. Required: (a) Prepare a Profit and Loss Account for the year ended December 31, 2020 and a Balance Sheet as at that date. (30marks) Give comments on the above information given. (20marks) (b)