Question 1 The following Trial Balance has been extracted from the books of Belle Limited for the year ended 30 September 2019: DR $ CR $ Opening Inventory 391,800 Purchases 1,941,000 Return outwards 73,200 Carriage inwards 91,950 Sales 2,851,920 Return inwards 150,360 Staff salary 363,500 Insurance 16,900 Telephone expenses 24,900 Distribution Costs 31,500 Postage and Stationery 20, 100 Ordinary Share Capital 806,000 Trade Payables 126,040 Bank overdraft 66,600 Land 420,000 Buildings 150,000 Fixtures and fittings 55,800 Trade Receivables 259,500 Cash in hand 6,450 3,923,760 3,923,760 Additional information: (i) Closing Inventory as at 30 September 2019 was $435,000. (ii) The prepaid insurance as at 31 September 2019 amounts to $900 (iii) There is an outstanding amount of $2,100 for the telephone expenses. (iv) Depreciation of 15% to be provided on buildings at cost. (v) The fixtures and fittings are depreciated at 10% using straight line method. (vi) The company provides a 5% allowance on trade receivables. Required: (a) Prepare an Income Statement for the year ended 30 September 2019. [13 marks] (b) Prepare a Statement of Financial Position as at 30 September 2019. [12 marks] [Total 25 marks]