QUESTION 3 (18 Marks: 24 Minutes) The following is T Allen's statement of financial position at31 December 2006 and statement of changes in equity for the year ended 31 December 2006 together with comparative figures for 2005 T ALLEN STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2006 2005 ASSETS Non-current assets Furniture at cost Accumulated depreciation Current assets Inventory Accounts receivable Cash at bank 70 000 100 000 (30 000 530 000 330 000 200 000 30 000 50 000 20 000) 470 000 270 000 120 000 80 000 500 000 600 000 EQUITY AND LIABILITIES Capital and reserves Capital Current liabilities Accounts payable Bank overdraft 200 000 400 000 300 000 100 000 600 000 300 000 200 000 200000 T ALLEN STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER Capital Balance at 1 January 2005 Profit for the period Withdrawals Balance at 31 December 2005 Profit for the period Withdrawals Balance at 31 December 2006 200 000 200 000 100 000) 300 000 100 000 (200 000)