Mrs. Chidinma Okafor runs a fashion design and retail shop called 'Chidi Couture' located in Enugu. The following trial balance was extracted from her books as at 30 June 2024: Debit (N) Credit (N) Capital (1 July 2023) 650,000 Drawings 95,000 Sales 1,820,000 Purchases 1,105,000 Returns inward 18,500 Returns outward 12,000 Opening inventory (1 July 2023) 142,000 Rent and rates 84,000 Salaries and wages 215,000 Electricity and water 38,400 Advertising 22,000 Discount allowed 11,500 Discount received 8,200 Bad debts written off 9,800 Allowance for doubtful debts (1 July 2023) 6,500 Trade receivables 187,000 Trade payables 143,500 Cash at bank 56,800 Petty cash 3,200 Equipment at cost 480,000 Accumulated depreciation - Equipment 144,000 Prepaid rent 12,000 Accrued salaries 16,000 Loan from First Bank Nigeria (10% p.a.) 200,000 Loan interest paid 10,000 2,490,200 2,490,200 Additional information: (i) Closing inventory as at 30 June 2024 was valued at N168,000. However, included in this figure are damaged goods with a cost of N15,000. These goods can only be sold for N8,500 after incurring selling costs of N2,000. (ii) Equipment is depreciated at 20% per annum on the straight-line method. A new piece of equipment costing N60,000 was purchased on 1 January 2024 and has been included in the equipment at cost figure above. No depreciation has yet been recorded for the year. (iii) The allowance for doubtful debts is to be maintained at 4% of trade receivables after writing off bad debts. (iv) Rent of N12,000 per quarter is payable in advance. The prepaid rent in the trial balance represents one quarter paid in advance. (v) The First Bank Nigeria loan was taken on 1 July 2023. Interest is charged at 10% per annum. Only half the annual interest has been paid as shown in the trial balance. (vi) Mrs. Okafor took goods worth N18,000 at selling price for personal use. The goods had a cost of N12,000. No entries have been made in the books for this transaction. Required: (a) Compute the value of closing inventory to be included in the financial statements, with justification based on the applicable accounting standard. (3 marks) (b) Prepare the Statement of Profit or Loss for the year ended 30 June 2024. (15 marks) (c) Prepare the capital account of Mrs. Chidinma Okafor showing the closing balance as at 30 June 2024. (4 marks) (d) State TWO differences between a sole trader's financial statements and those of a limited liability company. (3 marks) Total: 25 marks