The following balances were extracted from the books of FBC Pty Limited on 31 December 2020. Trial Balance as at 31 December 2020

	Debit	Credit
Sales		496 000
Purchases	434 000
Sales Returns	6 200
Purchase Returns		7 688
Inventory at 01/01/2020	124 000
Provision for Doubtful Debts		992
Wages and Salaries	37 200
Rates	7 440
Telephone	1 240
Shop Fittings at Cost	49 600
Van at Cost	37 200
Accounts Receivables	12 400
Accounts Payables		8 680
Capital		221 960
Bank	3 720
Drawings	22 320
Total	735 320	735 320

Additional notes

a. Closing inventory as at 31 December 2020 was P148, 800

b. 2% of accounts receivables are to written-off as bad debts.

c. Prepaid rates P620.

d. Increase provision for doubtful debts to 10% of accounts receivables remaining after writing-off bad debts.

e. Telephone expense of P272 was still outstanding at the end of the period.

f. Depreciation policy is as follows: Shop Fittings 10% per annum on Straight line basis. Van 20% per annum on Reducing Balance basis.

Required:

a) Prepare the Comprehensive Income Statement for the year ended 31 December 2020. (10 Marks)

b) Prepare the Statement of Financial position for the year ended 31 December 2020. (10 Marks)