Prepare the Statement of Profit or Loss for the year ended 31st December 2019, including necessary calculations for closing inventory, provision for bad debts, and prepaid insurance.

You're on a roll — Here are the calculations for each additional information point and the Statement of Profit or Loss. Calculations for Additional Information: a) Closing Inventory: The inventory on hand on 31st December 2019 is the closing inventory. Closing Inventory = ₦102,800 This figure will be used in the Cost of Goods Sold calculation. b) Provision for Bad Debts: The trial balance shows an existing Provision for Bad Debts of ₦1,790 (Cr) and Bad Debts of ₦1,790 (Dr). The new provision required is ₦5,600. Old Provision for Bad Debts &= ₦1,790 \\ New Provision for Bad Debts &= ₦5,600 \\ Increase in Provision &= New Provision - Old Provision \\ &= ₦5,600 - ₦1,790 \\ &= ₦3,810 \\ Bad Debts Expense for the year &= Bad Debts (from TB) + Increase in Provision \\ &= ₦1,790 + ₦3,810 \\ &= ₦5,600 This ₦5,600 will be charged as an expense in the Statement of Profit or Loss. c) Insurance Prepaid: The trial balance shows Rent, Rates and Insurance of ₦14,700. Insurance prepaid is ₦1,200. Rent, Rates