QUESTION ONE (50 marks) Smith has been trading of fashion women accessories for some years. The following list of balances has been extracted from his ledger as at 31 March 2019. Rent, rates and insurance Electricity paid Postages and stationery Advertising Salaries and wages Bank interest expenses Cash in hand Stock at 1 April 2018 Debtors Fixtures and fittings at cost Accumulated depreciation at 1 April 2018 Sales Creditors Purchases Office equipments at cost Accumulated depreciation at 1 April 2018 Share capital 5 years bank loan at interest rate of 20% p.a. 15,000 6,000 800 36,500 35,000 3,500 100 5,000 9,000 9,000 1,800 150,000 9,680 100,000 5,000 500 52,920 10,000 The following additional information as at 31 March 2019 includes: 1. Stock at 31 Mar 2019 was valued at $50,000. 2. An electricity bill of $300 for Jan 2019 was received. This bill has not yet been settled until May 2019. 3. Rates was paid in advance for Apr - Jun 19 - $1,200 4. A customer has failed to make payment - $1,500 for a long time. It deemed as bad debts as at 31 Mar 2019. 5. Depreciation of fixture and fittings: 20% p.a. on straight line basis. 6. Depreciation of office equipment: 10% p.a. on straight line basis. a) Prepare a Profit and Loss account for the year ended 31 March 2019 and a Balance Sheet as at that date. (30 marks) b) Give comments on the above information given. (20 marks)