Trial Balance of ABC Company for the Year ended 31 December 20X1 is as under:

		Dr	Cr
		$	$
	Revenue		600,000
	Purchases	240,000
	Administrative expenses	185,000
	Distribution expenses	75,000
	Plant and machinery cost	120,000
	Plant and machinery accumulated depreciation at 1 January 20X1		15,000
	Trade receivables	20,500
	Allowance for receivables 1 January 20X1		2,000
	Inventory 1 January 20X1	24,000
	Share capital		5,000
	Trade payables		29,000
	Retained earnings 1 January 20X1		43,500
	6% Loan repayable 31 December 20X4		100,000
	Cash	130,000
		794,500	794,500

The following notes are relevant to the preparation of the financial statements for the year ended 31 December 20X1:

(i) It has been determined that trade receivables of $1,000 are irrecoverable. No adjustment is required to the allowance for receivables.

(ii) Depreciation on plant and machinery is charged at 20% per annum on a reducing balance basis. Depreciation is charged to cost of sales.

(iii) The loan was taken out on 1 April 20X1. No interest has been accrued.

(iv) Closing inventory has been correctly valued at $30,000.

(v) The current year tax bill has been estimated at $6,000.

Required:

Prepare Statement of Profit or Loss for the year ended 31 December 20X1.

Prepare Statement of Financial Position as at 31 December 20X1.