Question 6-Financial Statements (39 marks) The folowing account balances were extracted from the books of S. Burke, a sole trader, on 31 December 2016: Amount N$ Fixtures& fittings at cost Accumulated depreciation-Fixtures & fittings at cost Motor Vehidles at cost Accumulated depreciation Motor Vehicles at cost Computers at cost Accumulated depreciation-computers Inventory as at 1/1/2016 200 000 20 000 200 000 20 000 178 000 24 100 42 190 98 180 Receivables Payables Bank overdraft 84 150 21 020 21 400 VAT liability 5% Bank loan 280 500 Sales 717 500 Purchases 422 300 Sales returns 13 240 purchases returns 9 170 Discounts allowed Discounts received Carriage outwards Carriage inwards Light and heat Telephone and intemet 3 120 7 770 4 520 4 750 8 790 5 600 Insurance 18 000 Rent 57 000 Term loan interest Wages and salaries Provision for bad debts 1/1/2016 Bad debts 6 000 39 070 6 430 5 930 Drawings 19 600 114 250 Capital Totals 2 652 580 Page 12 of 13 The following information, which has not be en accounted for above, is also available: Inventory on hand on 31 December 2016, was valued at NS 79 000. iAn amount of NS 3 180 owed by ABC who have been dedared bankrupt must be wrtten off Depreciation to be provided as folows: -Fixtures and fittings, 5 % per annum on cost using straight line method a. b. -Vehicles, 20% per annum on reducing balance method c. -computers -25% per annum on reducing balance method Insurance paid of Ns 12 000 is in respect of motor vehidle covers for the period 01 July iv 2016 to 30 June 2017. Provision (Allowance) for bad debts should be adjusted to 10% of the receivable amount V. vi Rent of N$ 5 000 for the month of December 2016 has not been paid and this has not been recorded in the books (Ignore any additional interest expense not accrued) You are required to: Prepare the statement of comprehensive (Income statement) of S Burke for the year a. (21 marks) ended 31 December 2016 b. Prepare a statement of financial position (Balance Sheet) for S Burke as at 31 (18 marks) December 2016 The End