Question 1: Prudence Pipe Prudence Pipe runs a business from her home selling jewellery and clothes. Her regular customers make purchases on credit and any other customers pay by cheque. Prudence does not keep full accounting records and she has asked you to help her produce some financial statements for the year to 31 March 20X1, using the information that you are given below: Prudence Pipe: Statement of financial position at 31 March 20X0 E E E Non-current assets Car: cost 12,500 Less: accumulated depreciation (2,000) 10,500 Current assets Inventory 5,500 Trade receivables 2,200 Less: provision for doubtful debts (44) 2,156 Cash at bank 11,644 19,300 Total assets 29,800 Liabilities and equity Current liabilities Trade payables 4,500 Other payables 148 4.648 Non-current liabilities: Bank loan 10,000 Total liabilities 14.648 Equity: Proprietor's capital 15,152 Liabilities and equity 29,800 Additional information An analysis of the bank statements for the year to 31 March 20X1 shows the following: E Cash banked from debtors 58,600