QUESTION 2

The following trial balance has been extracted by the bookkeeper of Asri Lim at 31 December 2020.

	Dr ($)	Cr ($)
Inventory	14,350
Purchases	114,472
Sales		259,688
Rates	13,718
Heating and Lighting	12,540
Wages and Salaries	42,614
Vehicle Expenses	5,817
Advertising	6,341
Premises	75,000
Office Equipment	33,000
Vehicles	21,500
Accounts Receivable	23,854
Bank	1,235
Cash	125
Capital at 1 January 2020		62,500
Drawings	12,358
Loan from Bank		35,000
Accounts Payable		17,281
Service Tax		1,955
Purchases Return		600
Sales Return	800
Discount Allowed	400
Discount Received		800
Bad Debt	200
Provision for Bad Debt		300
Carriage Inwards	300
Carriage Outwards	400
Rental Income		900
	379,024	379,024

Inventory at 31 December 2020 was valued at $16,280.

Required

Prepare Asri Lim statement of profit or loss for the year ending 31 December 2020 and a statement of financial position as at that date.