The following Trial Balance was extracted from the books of Danfo Enterprise, a second hand bags dealer as at 31^st December, 2014.

The following additional information are provided:

i. Provision for doubtful debts is to be reduced by 10%.

ii. Rate and Rent has been paid in advance by two (2) months. Note that Danfo Enterprise pays GH¢1,000 each month.
iii. Stock in trade as at 31st December, 2014 GH¢80,150.
iv. A bill of GH¢6,150 for vehicle running was outstanding as at 31st December, 2014.
v. The Enterprise provide depreciation as following.

• Vehicle 20% per annum on straight line bases.
• Furniture and Fittings 20% per annum on straight line basis.
  You are required to:
  i. Prepare Income statement for the year ending 31st December 2014.                                                                          (8marks)

ii. Prepare Statement of Financial Position as at 31st December 2014.                                                                              (7 marks)