Section B Answer ALL Questions Orostien No David Enterprise" is a sole proprietorship owneil by Mr, David. The foliowing trail balance was extracted from the business as at 31 March 2017 Rs.'000 Rs.'000 Description Debit Credit 18,160 Capital as at 14.2016 Property Plant & Equipment (at cost) 12.700 Land and Building (Land Rs. 9.200,000) 4,000 Plant and Machinery Delivery Vehicle 3.000 Accumulated Depreciation as at 1.4. 2016 1,200 Buildings 1450 Plant and Machinery Delivery Vehicle 1,240 10,100 Sales/Purchases 6.500 Carriage inward chargers 500 Inventories as at 1 April 2016 X 2,000 6,500 Bank Loan (12% interest rate per annum) 2,050 Trade Receivables/Trade Payables 4,500 400 Sales Return/ Purchase Return 600 Advertising expenses 100 800 500 Discounts 300 Provision for Doubtful debts as at 1.4.2016 Distribution costs 700 2,000 Fixed Deposit (15% Interest rate per annum 126 Electricity 12 Telephone bill Bank Chargers 76 Sales Commusion 100 Rent tncome 18 Sundry Expenses ank loan interest expense 650 1,500 Drawings by Me David 800 Insrance espense 6,500 Cash in hand 4.800 Bank current account balance 200 Bad debis written off 47,100 47,100 The following additional information is available Closing stock as at 31" March 2017 is valued at Rs. 3,100,000. 2. Mr. David has transferred his personal furniture and equipment items worth Rs. 1,500,000 to the business at the beginning of the financial year, and this was not recorded in the books of accounts. Furniture and Equipment has to be depreciated at 25% on straight Iline basis. 3. The following transactions relating to the acquisitions and disposals were totally omitted from the books of accounts On 1 July 2016 a delivery vehicle costing Rs. 700,000 was sold for Rs. 550,000. This asset was purchased on 1" April 2014 A new plant was acquired on 1" April 2016 for Rs. 1,500,000 from ABC Enterprises on credit terms. The amount is payable within five years starting from the next year. Property, Plant and Equipment (PPE) Depreciation policy of the business is as follows Building 10% on straight line basis Plant and Machinery 12 % on reducing balance method Delivery Vehicle 20% on straight line basis 4 5. When paying the electricity bill for March 2017, Rs. 12,000 has been paid in excess 6The policy of the business is to maintain a provision for doubtful debts at 5% on the outstanding ade receivables balance at the end of the year Bank loan interest expense and the fixed deposit interest income need to be adjusted as ner the accnial concept March 2017 are as follows 8 Accrued expenses for the year ended 31 Accrued sales commission Rs. 20,000 Accrued Sundry expenses Rs. 15,000 9 Insurance expense includes Mr. David's personal life insurance installment amounting to Rs. 150,000 10 At the begimning of the financial year, the business has sublet its extra premises on a monthly rental fee of Rs. 10,000. The tenant has settled only 10 months rental fee. Required aPrepare the Statement of profit or loss for the year ended 31 March 2017 (13 Ma b. Prepare the Statement of Financial position as at 31 March 2017 (12 (Total 25