Yusuf started business on 1 April 2020 buying and selling mobile phone accessories. He started the business with a deposit in the bank from his own money and a 8% bank loan repayable in full at the end of 5 years. Yusuf did not keep full books of account, but does have a bank account and a number of other documents. He has asked you to assist him to prepare a set of financial statements for the government. The following information is available. (1) Bank Account summary Receipts E Payments E Capital 5 000 Rent 7 500 Bank loan 5 000 Wages 10 000 Cheques from Motor vehicle 5 800 trade receivables 45 000 Fixtures and fittings 2 000 Cash sales banked 7 000 Cheques to trade payables 29 000 Motor vehicle expenses 1 900 General expenses 4 200 Bank loan interest 200 Total receipts 62 000 Total payments 60 600 (2) Expenditure paid from cash sales before banking. Purchases 3 200 Drawings 8 750 General expenses 1 300 Additional information at 31 March 2021. (1) Inventory f4 750 (2) Wages $900 were owing. (3) Rent for the year was at the rate of $500 per month. (4) Estimated values of the motor vehicle was $4 700 and the fixtures and fittings were f1 500 (5) Trade receivables $5 100 (6) Trade payables E2 800 14 P658 Required (a) State three advantages of keeping a full set of books of account. (3) (b) Prepare the: (i) Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2021 (11) (ii) Statement of Financial Position at 31 March 2021