SECTION A [TOTAL MARKS : 80] INSTRUCTION: Answer ALL THREE (3) questions. Question 1 Orr Limited is a company that manufactures washing machines. The following trial balance was extracted as at 31 December 2008 - the end of the financial year: The following additional information is available: (i) Closing stock as at 31 December 2008 is 275,000. (ii) A review of trade debtors at the year-end reveals 17,000 of debtors to be written off. Of the remaining debtors a provision of 10% is required. (iii) The following accruals and prepayments need to be adjusted for at the year end (vi) Corporation tax for the year is to be provided for of 35,000. Required: (a) Prepare an income statement for Orr Limited for the year ending 31 December 2008. (20 Marks) (b) Prepare a statement of financial position for Orr Limited as at 31 December 2008 (10 Marks) [Total: 30 Marks]