5.

MKO Abiola, a soletrader who keeps very simple financial records is file the financial statements with the tax authority in order to beat down his is however, able to estimate the following about his assets and liabilities

1st January

N

31st December

Bill Receivable

12,000

N

21,000

Motor Vehicle

80,000

70,000

-Stock in trade

19,100

35,200

Cash in Hand

12,300

28,500

Loan from Ademola

Debtors:

40,000

40,000

Toluwabi

12,600

24,000

Bobola

19,300

Toluwani

7,800

8,900

Gidado

3,900

12,500

Creditors:

Bawo

7,200

8,400

Esan

9,600

10,100

Clerkson

10,500

3,800

During the year, MKO Abiola paid into the business additional cash amounting to 10,000, withdrew cash of 6,000 and goods worth 4,200.

You are required to prepare:

(i) Opening and closing statement of affairs to determine opening and closing capital

(ii) Ascertain the profit for the year.