The following trial balance was extracted from the books of Al Mawaleh Traders, sole trader as at 31 May 2018. Trial balance as at 31 May 2018 Particulars Debit Credit s s Capital 51.0 Drawings 4,080 Buildings at cost 53,000 Receivables and Payables 8,600 6,000 Opening Inventy Salaries 5.00 Freight in Freight Out 2.140 Insurance Purchases and sales 97.600 140,35 Returns 980 1,640 Selling Expenses Bad debes Discount Received Equipment at cost Furniture cost 16,000 Provision for depreciation Equipment 800 Furniture 5.200 Cash in hand 820 Bank overdraft 7,416 Provision for doubtful debes 214761214,761 900 400 Additional information: 1) Closing Inventory is valued at $12,600 on 31 May 2018 (ii) Outstanding Salaries were $1,200 (iii) Prepaid Insurance was $690 (iv) The provision for doubtful debts is to be adjusted to 5% of Receivables outstanding on 31 May 2018 (v) Depreciation is to be provided as follows: Equipment 10% per annum using the straight line method. Furniture 20% per annum using the straight line method. You are required to: Prepare the Statement of Profit or Loss (Income Statement) for the year ended 31 May 2018. B2 Prepare the Statement of Financial Position (Balance Sheet) based on the Trial Balance in Section A (Question 1) The following trial balance was extracted from the books of Al Mawaleh Traders, sole trader as at 31 May 2018. Trial balance as at 31 May 2018 Particulars Debit Credit s s Capital 51.0 Drawings 4,080 Buildings at cost 53,000 Receivables and Payables 8,600 6,000 Opening Inventy Salaries 5.00 Freight in Freight Out 2.140 Insurance Purchases and sales 97.600 140,35 Returns 980 1,640 Selling Expenses Bad debes Discount Received Equipment at cost Furniture cost 16,000 Provision for depreciation Equipment 800 Furniture 5.200 Cash in hand 820 Bank overdraft 7,416 Provision for doubtful debes 214761214,761 900 400 Additional information: 1) Closing Inventory is valued at $12,600 on 31 May 2018 (ii) Outstanding Salaries were $1,200 (iii) Prepaid Insurance was $690 (iv) The provision for doubtful debts is to be adjusted to 5% of Receivables outstanding on 31 May 2018 (v) Depreciation is to be provided as follows: Equipment 10% per annum using the straight line method. Furniture 20% per annum using the straight line method. You are required to: Prepare the Statement of Profit or Loss (Income Statement) for the year ended 31 May 2018. B2 Prepare the Statement of Financial Position (Balance Sheet) based on the Trial Balance in Section A (Question 1)