Potter has always kept his accounts in proper double-entry form, but they were all destroyed following a fire at his offices on 31 December 2022. His accountants had the following statement of financial position as at 31 December 2021: Assets Non-current assets (carrying amount). Land and buildings Motor vehicles Fixtures Rs. Rs 80,000 B,000 7.500 95.500 Current assets Inventories Receivables Bank Total Assets 18,800 16.200 9,600 44,600 140,100 Capital and liabilities Capital 97,200 Long-term liabilities 10%loan 30,000 Current liabilities Trade payables Accrued expenses Loan interest Local business tax Total liabilities 11,000 1,500 400 12.900 140,100 You obtain the following additional information: i. Cheques received from receivables during the year were Rs.78,900; sales amounted to Rs.80,500 and cash discount was allowed to some receivables. il Purchases during the year were Rs,45,250 and payables at 31 December 2022 were Rs.9,550. il. Payments ade bpy cheque during the year included wages Rs.9,600, motor expenses Rs.2,250, general expenses Rs.2,550, loan interest Rs.3,000, drawings Rs,4,000 and local business tax for the 18 months to 31 March 2023 Rs.2,400 bill o Rs.500 for motor expenses was awaited at 31 December 2022, iv. v. At 31 December 2022, inventories were Rs.16,000 and receivables Rs.17,300 vi. Depreciation is to be charged on the carrying amount at 25% on motor vehicles and at 20% on fixtures. You are required to prepare a.Income Statement for the year of 2022. b. Statement of Financial Position for the year ended 2022.
