SECTION B Answer both questions in this section in the answer booklet provided, using a black or blue ink pen only Question 1 The following balances were extracted for the books of Latoya Jackson trading as "Tek You Han Tun Fashion Variety Store" at the end of September 2018 DR ($) CR(S) 1,500,000 15,000 20,600 257,500 1,500 2,050 12,200 13,600 2,000 24,870 4,500 Particulars Sales Provision for depreciation - Motor Vehicle Accounts Receivable Capital Provision for bad debts Carriage Inwards Return Inwards Return Outwards Carriage Outwards Accounts Payable Discounts Purchases Motor Vehicle Rent Received Wages Drawings Stock at October 1, 2017 Equipment Bank Cash in hand Provision for depreciation - Equipment Commission Received Rent Payable Rates 10,000 320,500 400,000 48,000 50,500 8,000 25,280 550,000 42,840 1,500 85,000 6,000 26,000 7,500 Loan 75,000 910,000 Building Provision for depreciation - Building 358,000 2.388,970 2,388,970 Notes a) Depreciation rates are as follows: i. Equipment -10% per annum on the reducing balance basis ii. Building - 5% per annum on the straight line basis iii. Motor Vehicle -- 15% per annum on the reducing balance b) Latoya took merchandise valued at $ 8,600 from the shop for her birthday party. This was not recorded in the books. c) Latoya rents a small section of the store to Jessica, the rent amounts to $4,000 per month due the first day of each month. For the month of June until the end of the accounting year, the rent was increased by 20%. d) Wages is accrued by $5,000; rates are prepaid by $800, commission receivable earned for the year amounted to $10,000. e) The provision for bad debt is to be adjusted so it is 10% of accounts receivable 1) Stock at the yearend was valued at $14,750. Required: a) Prepare Latoya Jackson's Statement of Profit or Loss with the appropriate headings (25 marks) b) Prepare Latoya Jackson's Statement of Financial Position with the appropriate headings (15 marks)