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Question Four The following is extract of the account balances of Trading Outfit of Apanga Cooperative as at 31st December 2019 Accumulated Fund Loan Bank Overdraft Plant and Machinery Furniture and Fittings Sales Purchases Carriage Inwards Inventory Returns Inwards Returns Outwards Discounts Allowed Discounts Received Rent Telephone Wages and Salaries Lighting and Power Insurance Premium Sundry Expenses Cash at Bank Cash on Hand Provision for doubtful debts Pavables Provision for Depreciation: Plant and Machinery Furniture and Fittings N 5.000.000 1.000.000 1.000.000 4.000.000 1.000.000 30.000.000 17.500.000 500.000 1.000.000 400.000 300.000 800,000 600.000 250,000 120.000 6.000.000 100,000 360.000 50.000 3,000,000 380.000 300.000 2.880.000 800,000 120,000 Additional information i. Inventory as at 31 December 2019 was N1,300,000 ii. Rent Outstanding as at December 2019 wasN50.000 Insurance Premium relating to 2020 was N120,000 iv. Write off bad debts amounting to N400,000 and increase provision for doubtful debts to N500.000 Provide 10 percent for depreciation on plant and machinery for the current year. vi. Provide 5 percent for depreciation on furniture and fittings for the current year. v. REQUIRED a) Prepare the Operating Statement for the year 2019 b) Extract a Statement of financial position for Apanga Cooperatives as at 31st December 2019 2

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