Leo is in business as a sole trader. The following balances were extracted from his books on 31 March 2019. $ Capital 80000 Drawings 25000 Non-current assets (at cost) Land and buildings 150000 Computer equipment 46000 Fixtures and fittings 12000 Provisions for depreciation Land and buildings 9000 Computer equipment 18000 Fixtures and fittings 6600 Wages and salaries 87000 Computer repairs 21600 Commission receivable 12300 Trade payables 31850 Trade receivables 42000 Revenue 475000 Purchases 255000 Returns outwards 7900 Inventory at 1 April 2018 31000 Rent and rates 22750 Provision for doubtful debts 3700 Marketing expenses 12600 5% bank loan (repayable June 2019) 20000 4% bank loan (repayable May 2023) 60000 Bank loan interest paid 2100 Heat and light 9750 General expenses 14300 Bank overdraft 6750 Additional information at 31 March 2019 1 Inventory was valued at $26400. 2 Leo had taken goods valued at $3200. No entries had been made in the books. 3 A computer costing $8000 had been recorded in the computer repairs account. 4 Computer repairs of $2100, paid by cheque, had not been recorded in the books. 5 Rent of $2000 was owing and rates of $450 were prepaid. 6 Marketing expenses included a payment of $700 for a six-months' campaign ending 30 June 2019. 7 The 5% bank loan was taken out in 2016. The 4% bank loan was taken out on 1 August 2018. 8 Depreciation is to be charged on all non-current assets owned at the end of the year as follows: Land costing $75000 not depreciated Buildings 2% per annum on cost Computers 20% per annum using diminishing (reducing) balance method Fixtures and fittings 10% per annum using the straight-line method 9 Trade receivables of $4000 are irrecoverable. The provision for doubtful debts is to be maintained at 5%. REQUIRED

1. (a)Prepare the income statement for the year ended 31 March 2019.[20]
2. (b)Prepare the statement of financial position at 31 March 2019.[20]