Boris is in business as a sole trader. The following balances were extracted from his books on 30 April 2018. | | $ | |:--------------------------|:------| | Revenue | 419000 | | Purchases | 242000 | | Returns inwards | 7800 | | Returns outwards | 6200 | | Inventory at 1 May 2017 | 28900 | | Disposal account | 7500 debit | | 8% Bank loan (repayable 31 July 2020) | 60000 | | Bank loan interest paid | 2400 | | Bank | 4000 debit | | Trade receivables | 37400 | | Trade payables | 19000 | | Provision for doubtful debts | 900 | | Premises (cost) | 100000 | | Computer equipment (cost) | 40000 | | Fixtures and fittings (cost) | 10000 | | Provisions for depreciation at 1 May 2017 | | Premises | 64000 | | Computer equipment | 15000 | | Fixtures and fittings | 4500 | | Administration expenses | 30000 | | Carriage | 11500 | | Drawings | 20700 | | Capital | 50000 | | Water and electricity | 12400 | | Wages and salaries | 51600 | | Advertising | 24000 | | General expenses | 17400 | | Rent received | 9000 | Additional information at 30 April 2018 1 Inventory was valued at $22500. 2 A purchase of goods, $4000, had been omitted from the books. The purchase was $1000 by cheque and $3000 on credit. 3 The carriage included $2500 for collecting purchases. The remainder was for carrying goods to customers' premises. 4 During the year Boris took goods for his own use, $4500. 5 Advertising expenses include $9000 paid for a marketing campaign running from the beginning of March to the end of August 2018. 6 Three months' bank loan interest is due. 7 Depreciation is charged as follows: (i) Premises at the rate of 2% per annum using the straight-line method (ii) Computer equipment at the rate of 20% per annum using the diminishing (reducing) balance method (iii) Fixtures and fittings at the rate of 10% per annum on cost. 8 Trade receivables include a debt of $2400 which was considered irrecoverable. The provision for doubtful debts of 4% is to be maintained.

1. (a)Prepare the income statement for the year ended 30 April 2018. Boris Income Statement for the year ended 30 April 2018[22]
2. (b)Prepare the statement of financial position at 30 April 2018. Boris Statement of Financial Position at 30 April 2018[18]