Required: Prepare Statement of Profit or Loss and Statement of Financial Positions.

AB International Trial Balance As at. \begin{tabular}{|c|c|c|c|c|} \hline SL No & Particulars & L.F. & Debit (\$) & Credit (\$) \\ \hline 1 & Purchases & & 12,000 & \\ \hline 2 & Sales & & & 25,000 \\ \hline 3 & Discount & & 1,200 & \\ \hline 4 & Salaries & & 2,500 & \\ \hline 5 & Wages & & 10,000 & \\ \hline 6 & Cash in Hand & & 975 & \\ \hline 7 & Cash at Bank & & 13,500 & \\ \hline 8 & Repairs \& Maintenance & & 870 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline 9 & Sundry Expenses & 350 & \\ \hline 10 & Mortgage & & 14,000 \\ \hline 11 & Mortgage Interest & 250 & \\ \hline 12 & Traveling Expenses & 100 & \\ \hline 13 & Insurance & 150 & \\ \hline 14 & Carriage & 250 & \\ \hline 15 & Commission & 350 & \\ \hline 16 & Rent and Rates & 600 & \\ \hline 17 & Building & 6,000 & \\ \hline 18 & Machinery & 5,000 & \\ \hline 19 & Delivery Van & 4,000 & \\ \hline 20 & Capital & & 20,000 \\ \hline 21 & Accounts Payable & & 3,200 \\ \hline 22 & Accounts Receivable & 4,500 & \\ \hline \end{tabular} \begin{tabular}{|l|l|r|r|} \hline 23 & Opening Stock & 2,450 & \\ \hline 24 & Returns Inward & 300 & 800 \\ \hline 25 & Reserve for doubtful debts & & \\ \hline 26 & Notes Payable & 400 \\ \hline 27 & Notes Receivable & & \\ \hline & Total & 65,745 & 65,745 \\ \hline \end{tabular}