Answer both questions in this section in the answer booklet provided, using a black or blue ink pen only Question 1 The following is a trial balance that was obtained from the books of Andrew Chung, a wine merchant, as at March 31, 2019. Particulars DR ($) CR(S) Equipment Building 155,000 240,000 Sales 267,800 165,000 40,000 1,700 16,000 7,500 8,000 250,000 80,000 20,500 35,000 7,500 3,500 Purchases Salaries and wages Bad debts Provision for depreciation - Building Provision for depreciation - Equipment Provision for bad debts Capital Long Term Loan Bank Rent received from B Goode Discounts Returns Heating and lighting Carriage inwards Insurance Accounts payable Advertising Commission Receivable Drawings Postage and stationery Inventory at April 1, 2018 Cash Accounts receivable Carriage outwards 4,150 2,500 10,000 5,250 8,000 27,200 5,500 24,000 17,000 2,000 35,200 7,500 45,000 3,200 747.000 747.000 Notes a) Mr Chung took wines valued at $3,000 from the shop for his birthday party. This was not recorded in the books. b) Mr Chung rents Bevin Goode a small section of the store, the rent amounts to $3,000 per month. He occupied the space for the entire accounting year. c) Depreciation rates are as follows: i. Equipment -10% per annum on the reducing balance basis ii. Building - 5% per annum on the straight line basis d) The monthly payment for heating and lighting from April 1, 2018 to December 31, 2018 was $850; onwards to the end of the accounting year the monthly amount increased by 20%. e) Insurance is accrued by $3,000; advertising is prepaid by $500, commission receivable for the year amounted to $20,000. f) The provision for bad debt is to be adjusted so it is 10% of accounts receivable g) Inventory at the yearend was valued at $17,750. Required: a) Prepare Andrew Chung's Statement of Profit or Loss with the appropriate headings (25 marks) b) Prepare Andrew Chung's Statement of Financial Position with the appropriate headings (15 marks)