Question $2$

The following analysis of the cash transactions for the year was gathered from the incomplete records of N $.$ Carroll, a merchant:

$\backslash$table$[[,$R$,$R$],[\backslash$table$[[$Receipts:$],[$Received from sundry debtors$]],,300000],[$Additional investment of capital,,$45000],[$Payments:$],[$Payments to sundry aeditors,,$185000],[$General expenses,,$50000],[$Wages$,,77500],[$Drawings$,,95000],[\backslash$table$[[1$ Jan. $2022]],\backslash$table$[[31$ Dec. $2022]]],[$Balances:$],[$Bank overdraft,$37000,-],[$Debtors$,265000,440000],[$Creditors$,75000,97500],[$Stock$,85000,95000],[$Plant and machinery,$100000,100000],[$Furniture and fittings,$7000,7000]]$

Additional information:

Provision must be made for:

Depreciation:

$10\%$ p$.$a$.$ on plant and machinery $($straight$-$line$)$

$5\%$ p$.$a$.$ on furniture and fittings $($straight$-$line$)$

Bad debts provision:

$5\%$ p$.$a$.$ on sundry debtors

Required

$($a$)$ Draw up the income statement of N $.$ Carroll for the year ended $31$ December $2022.$

$($b$)$ Prepare the balance sheet of N$.$ Carroll at $31$ December $2022.$

$20$