How to do Question 3? Please provide detailed explanation and calculation (if necessary).

Question 3 Sha: "Do you know something about the Statement of Financial Position (SOFP)?" Don: "What's that?" Sha: "The SOFP is actually not a part of the double entry system." Don: "Are you sure? But when I close the ledgers, its balances are all shown in the SOFP" "Yup, I am pretty sure. Did you forget that the SOFP doesn't have closing balances?" Don: "Oh yeah..." Sha: Required: Based on the above conversation, discuss on the implications in which the Statement of Financial Position (SOFP) not being part of the double entry system