• The following is Ash’s trial balance as at 31 March 2017: Cash at bank Capital Depreciation (at 1 April 2016): furniture Drawings Electricity Furniture, at cost Insurance Miscellaneous expenses Allowance for doubtful debts (at 1 April 2016) Purchases Sales Inventory (at 1 April 2016) Trade payables Trade receivables Additional information: 4 000 20 500 3 600 10 000 2 000 9 000 1 500 65 800 1 200 80 000 150 000 10 000 20 000 21 000 199 300 Dr Cr ££ 199 300 1 Inventory at 31 March 2017: £15 000. 2 At 31 March 2017 there was a specific bad debt of £6000. This was to be written off. 3 Furniture is to be depreciated at a rate of 10 per cent per annum on cost. 4 At 31 March 2017 Ash owes the electricity board £600, and £100 had been paid in advance for insurance. 5 The allowance for doubtful debts is to be set at 10 per cent of trade receiva- bles as at the end of the year. Required: Prepare Ash’s statement of profit or loss and statement of retained earnings for the year to 31 March 2017 and a statement of financial position as at that date.