Question 5: The following is the trial balance of Philip Behan, a sole-trader, as at 31st December 2017. Dr Cr Premises at cost 100,000 Equipment at cost 48,000 Accumulated Depreciation - Premises 10,000 - Equipment 24,000 Sales 535,000 Purchases 355,000 Inventory as at 1/1/17 28,000 Interest Received 2,500 Wages and Salaries 65,000 Bad Debts written off 3,000 Loan interest 4,000 General Expenses 19,500 Repairs & Maintenance Expenses 5,500 Rent & Rates 18,000 Trade payables 22,000 Trade receivables 36,000 Bank 6,500 Drawings 18,500 Provision for bad debts 1,200 8% Long term loan 50,000 Capital 1/1/17 49,300 ________ ________ Totals 700,500 700,500

The following additional information is available:

1. Inventory at 31/12/17 has been valued at 27,000

2. Rent & Rates due at year end 1,200

3. General expenses prepaid at 31/12/17 1,000

4. The provision for bad debts is to be adjusted to 5% of debtors

5. Depreciation for the y/e 31/12/17 is to be provided for as follows: a. Premises: 5% per annum on cost b. Equipment: 25% per annum on cost.

Requirement: (A) Prepare Philip Behans Statement of Profit or Loss for the year ended 31/12/17 (B) Prepare the Statement of Financial Position as at 31/12/17