Mr. Pamona owns a corner shop in Lagos. On 30 December 2012, vandals looted his shop, stole all his inventories and cash of ₦75,000. Mr. Pamona was fully insured against theft and he has asked you to prepare his accounts to enable him estimate his insurance claim. Your investigation revealed the following:

i. Net assets on 1 January 2012:

• Furniture and fittings:
  Cost: ₦900,000
  Accumulated depreciation: ₦(400,000)
  Carrying value: ₦500,000
• Inventories: ₦2,700,000
• Trade receivables: ₦430,000
• Prepayments (rates): ₦30,000
• Cash in bank: ₦2,140,000
• Cash float in till: ₦30,000
• Trade payables: ₦1,650,000
• Accrued electricity: ₦40,000

ii. Bank statements for nine months from 1 January 2012 show the following:
Receipts:

• Cash and cheques lodged: ₦20,060,000
• Investment income: ₦182,000
  Total: ₦20,242,000

Payments:

• Trade payables: ₦17,850,000
• Rent (1 January – 31 December): ₦1,200,000
• Electricity: ₦155,000
• Insurance – theft: ₦45,000
• Insurance – life: ₦107,000
• Telephone: ₦83,000
  Total: ₦19,440,000

iii. The following were paid in cash from the till:

• Trade payables: ₦2,400,000
• Drawings (per month): ₦295,000

iv. Mr. Pamona’s gross profit margin on sales has averaged 20% in recent years.

v. The furniture and fittings are now estimated to be worth only ₦200,000.

vi. A cheque for ₦52,000 in respect of the telephone bill for the quarter ended 30 September 2012 was not shown in the bank statements until 3 October 2012.

vii. Rates for the period 1 April to 1 October, 2012, amounting to ₦75,000 were still outstanding.

viii. Trade receivables and payables were ₦270,000 and ₦1,900,000 respectively on 30 September 2012.

You are required to prepare Mr. Pamona’s:
a. Statement of Profit or Loss for the nine-month period ended 30 September 2012. (10 Marks)
b. Statement of Financial Position as at that date. (5 Marks)