Question 1 5,000 Ash corp provides the following balances which were from its books of accounts for the year ended 31st December 2020: Dr. Cr. $ Equity share capital 500,000 Profit & Loss account balance at 1 January 2020 75,000 Commission received 6,500 Wages 120,000 Utilities charges 20,000 Carriage inwards 10,000 Loan Interest Rent 35,000 Insurance 9,000 Machinery at cost 700,000 Purchases 1,116,500 Sales 1,525,000 Return inwards 15,000 Return outwards 1,500 Furniture & Fittings at cost 100,000 Accumulated depreciation - Machinery as at 1 January 2020 210,000 Accumulated depreciation-Furniture & Fittings as at 1 January 2020 30,000 Trade Receivables 320,000 Trade Payables 62,500 Bank overdraft 40,000 Opening stock 78,000 Cash at bank 22,000 Term Loan (repayable in 2030) 100,000 2.550,500 2,550,500 Additional information: (a) Depreciation is to be provided at 10% and 25% on the cost of Machinery and Furniture & Fittings respectively. (b) The closing stock as at 31 December 2020 was valued at $315,000. (c) Prepaid rent of $3,200 was included in rent. (d) Provide for irrecoverable debts on debtors at 1.5% (e) Accrued wages $4,000 (f) Provide for income tax @ 15% Required: (a) Prepare the Statement of Profit or Loss for the year ended 31 December 2020 (b) Prepare the Statement of Financial Position as at 31 December 2020