The following balances were extracted from the books of Patricia Chin on

$31\mathrm{.}03\mathrm{.}2013.$

Additional information

Inventory at $31$ March $2013$ was valued at $$4200.$

Insurance relates to a period of fourteen months to $31$ May $2013.$

A motor vehicle repair bill $$225$ was owing at $31$ March $2013.$

Bad debts of $$246$ are to be written off.

During the year Patricia took $$800$ from the bank for personal use. No record of

this was made in the books.

A purchase of fixtures and fittings during the year, $$2000,$ had been recorded in

the general expenses account.

Premises are depreciated at $2\%$ per annum on cost$.$

Fixtures and fittings are depreciated at $8\%$ per annum on cost$.$

Motor vehicles are depreciated at $20\%$ per annum using the diminishing

$($reducing$)$ balance method.

The provision for doubtful debts is to be maintained at $6\%$ of trade receivables.

REQUIRED

a$)$ Prepare the income statement for the year ended $31$ March $2013.$

b$)$ Prepare the Statement of Financial Position at $31$ March $2013.$