Tiff Trading Trial balance as at 31 December 2017 $ $ 20,000 1,657,000 20,000 105,000 50,000 45,000 65,000 750,000 475,000 100,000 130,000 50,000 500,000 Interest income Revenue Water and electricity Wages Carriage outwards Insurance Inventories @1 January 2017 Property, plant and equipment Motor vehicle Accumulated depreciation @1 January 2017 - Property, plant and equipment Accumulated depreciation @1 January 2017 - Motor vehicle Cash at bank Capital @ 1 January 2018 Prepayment Drawings Payables Allowance for receivable @ 1 January 2018 Carriage inwards Purchases Bank overdraft Advertising Transport and traveling Rental Discounted received Irrecoverable debt Interest payable Receivables Bank loan 25,000 80,000 110,000 3,000 75,000 800,000 75,000 55,000 25,000 130,000 10,000 10,000 5,000 150,000 300,000 2,910,000 2,910,000 Additional information: 1. Inventory at the year end at cost $70,000, it was told that the inventory can be sold at $75,000 at expenses $4,995 2. Rental accrued at the year-end $5,500 has not been recorded 3. Wages are prepaid by $3,000 4. Allowance for receivable is provided at 3% 5. Depreciation policy of the company are follow: - Property, plant and equipment 10% p.a at cost - Motor vehicle 10% p.a at the reducing balance method 6. Machine was disposed of for $45,000. The original cost and the net book value of the machine were $90,000 and $42,000 respectively. Prepare a statement of profit and loss and a financial statement and show the working step for additional information