The following trial balance has been extracted from the ledger of P. Jim, a sole trader. Trial Balance as at 31 December 2019 141,180 82,320 2,300 10,000 6,570 340 670 25,000 310 Sales Purchases Carriage outwards Drawings Rent and rates Insurance Postage and stationery Salaries Sundry expenses Accounts payable Allowance for doubtful debts Accounts receivable Cash at bank Cash in hand Inventory as at 1 January 2019 Office equipment at cost accumulated depreciation Capital 3,200 170 12,900 5,620 1,300 6,400 25,440 9,158 25,462 179,170 179,170 The following additional information as at 31 December 2019 is available: (1) Rent has been prepaid by 600. (ii) Accrued salaries were 1,000. The allowance for doubtful debts to be increased by 70. (iv) Office equipment is to be depreciated at 20% per annum using the reducing balance method. (v) Inventory at the close of business was valued at 7,200. Required: (a) Prepare a statement of profit or loss for the year ended 31 December 2019. (15 marks) (b) Prepare a statement of financial position as at 31 December 2019. (15 marks)