OA The following trial balance has been extracted from the ledger of Mr Yousef a sole trader.

Trial Balance as at 31 May 19X6 Dr Cr

£ £

Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, rates and insurance 6,622 Postage and stationery 3,001 Advertising 1,330 Salaries and wages 26,420 Bad debts 877 Provision for bad debts 130 Debtors 12,120 Creditors 6,471 Cash on hand 177 Cash at bank 1,002 Stock as at 1 June 19X5 Equipment 11,927 at cost 58,000 accumulated depreciation 19,000 Capital 53,091 216,770 216,770 The following additional information as at 31 May 19X6 is available:

(a) Rent is accrued by £210.

{b) Rates have been prepaid by £880.

(c) £2,211 of carriage represents carriage inwards on purchases.

(d) Equipment is to be depreciated at 15% per annum using the straight line method.

(e) The provision for bad debts to be increased by £40.

(/) Stock at the close of business has been valued at £13,551.

Required:

Prepare a trading and profit and loss account for the year ended 31 May 19X6 and a balance sheet as at that date.

{Association of Accounting Technicians)