Question The following balances have been extracted from the accounting records of Maica Ltd year ended 31 December 2018. Land and building Plant and Machinery 35,000 15,000 Motor Vans Furniture and Fittings Sundry creditors 45,000 5,000 16,000 Cash in hand 1,200 Cash at bank 18,000 Stock 1" Jan 2018 900 Rent and rates 600 Electricity 400 Insurance 500 00 Sales 80,000 Carriages 200 40 450 Purchases 45,000 Returns 700 400 Discounts 700 800 Bad debts 300 Sundry debtors 25,000 Repairs (building) 1,500 Salaries 10,000 Drawings 2,000 Capital 110,250 207,450 207,450 Additional information: (a) Inventory 31 December 2018 was: cost GHC12,500. (b) Insurance prepaid was GHC100 (c) Electricity outstanding was GHC200 (d) Unpaid bills due for building repairs were GHC250 (e) Good value at GHC800 were withdrawn by the proprietor for his personal use (f) Provision for bad debts at 5% on sundry debtors should be made (E) Depreciation: building 10%, motor van 20%, Plant and machinery 20%, Furniture 20%. You are required to prepare: (a) Income statement for the year ended 31 December 2018 (b) Statement of financial position year ended 31 December 2018