Jane Smith owns a business called Jasmine Ltd, which started trading on 1 July 20X6. At the end of the second year of trading, her accountant provides the following trial balance from the accounting system. Jasmine Ltd Trial balance at 30 June 20x8 Debit Credit Revenue 104,900 Purchases 39,700 Inventory at 1 July 20X7 10,000 Equipment at cost 20,000 Trade receivables 6,000 Trade payables 8,000 Cash and cash equivalents 15,300 Other income 100 Salaries 30,000 Rent and rates 15,000 Insurance 3,000 Lighting and heating 1,500 Telephone and Internet 2,000 Advertising 500 Allowances at 1 July 20X7: Depreciation on fixtures & fittings 4,000 Doubtful debts 1,000 Share capital at 1 July 20X7 20,000 Retained profit at 1 July 20X7 5,000 143,000 143,000 Additional information at 30 June 20X8: Inventory was valued at 12,000 Equipment has a useful life of 5 years and no residual value. They are depreciated using the straight line method. The company makes an allowance for doubtful receivables based on 10% of opening trade receivables. Estimated current tax liability 4,500 The company classifies expenses by nature. No dividends will be paid and there is no other comprehensive income. Required: a) Use the relevant figures in the above information to prepare the following statements for Jasmine Ltd: ? a statement of comprehensive income for the year ending 30 June 20X8. [20 marks] ii. A statement of financial position at that date. Show all your workings. [15 marks] b) Discuss the general purpose of the statement of financial position and the meaning of the terms asset, liability and equity as defined by the Conceptual Framework for Financial Reporting (IASB, 2015a). [8 marks] c) Discuss the going concern basis of accounting and the principles involved, taking the example of the valuation of tangible assets in the statement of financial position. [7 marks] [Total 50 marks]