You have been asked to help prepare the financial statements of Laone gardening for the year ended 31 May 2023. Laone started her business with capital of P200,000. The list of figures extracted from her records as at 30 May 2023 is shown below.

Purchases of seeds and plants 70,000

Motor van 110,000

Mowing machine 7,000

Hedge trimmer 25,000

Motor van expenses 30,000

Rent of garage 20,000

Paid to wife for clerical work 50,000

Insurance 20,000

Private expenses paid from bank 150,000

Cash in hand and at bank 18,000

Cash sales made to customers 300,000

Capital at the start of the year 200,000

Additional Information:

i) Inventory of seeds and plants at 31 May 2023 was P10,000

ii) The motor vehicle is depreciated at 25% per annum in a straight-line basis.

iii) The mowing machine and the hedge trimmer are each depreciated at 20% per annum using the reducing balance method.

Required:

a) Prepare the statement of profit or loss for the year ended 31 May 2023.

b) Prepare the statement of financial position as at 31 May 2023.