Question 1 Madarm ldikoko is a movision shop at Otus On 31 December, 2020 the follewing trial balance was extracted from her bookt Dr. Cr GHC GH Capital (1/2020) 960.000 Moto vancos) 680,000 320,000 Accumulated depreciation Mo 120,000 Equipment 104.000 Inventory /12070) 120,000 Purchases and sales 450.000 1520,000 Return 27,000 12.000 Cimage outwards 48,000 Carriage is 20,400 Trade Receivables 290,000 Trade payables 120,000 Kilowance for receivables 16,000 60,000 es and Salates 270,000 54000 18.000 Postage unul Stationery 132,000 Lily Bills 42.000 160,00 Rent & Rates 128,000 Sundry expenses 100,000 Cash 40.000 Bank 239.400 Personal drawings 88.000 JU 2.108.800 The following additional information was made available Inventory : 31 December, 2020 was van GHd 176,00 Depreciation at the rate of 10 un confor Motor Van and 5076 an Equipment an reducing balance method basis An amount of GHE 28.000 sacchand respect of Pastage and Stationery at 31" December 2017 Alone for receivables is to be adjust to GHe 10,000 at 31 December, 2020 as a result of improvement in debt recovery efforts Rent and rates pre-paid amounted to Ghe 15,500 The loan was contracted on January 2000. Provision should be made for the interest on loan Required Prepare the income statement for the year ended 31 December, 2020 b) Prepare the Statement of financial position 31 December, 2020 (20 marks)