QUESTION 3 (i) At the end of the Year 1, the business pays 15,000 from the bank account. Only 12,000 of this is for the current period. The rest is an advance payment for Year 2. (ii) The occupant of the rental property has paid 18,000 rent at the end of Year 1. This payment includes a prepayment for the first 3 months of Year 2. (ii) 10,000 is paid for electricity at the end of Year 1. The remaining balance for the year, 2,000 is not billed until Year 2 and therefore not paid yet. REQUIRED: (a) (b) Prepare the year-end adjustments in the ledger accounts showing all the balances carried down [10] Prepare the extract of Statement of Profit and Loss and extract of Statement of Financial Position for Year 1. [3] Explain the accounting concept applied in accruals and prepayments in the ledger accounts prepared in part (a). What is the benefit of applying it? [2] (c) Total: 15 marks