28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader Trial Balance as at 31 May 20X6 Dr E Cr E 138,078 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 333 Part 4 Adjustments for financial statements 177 Provision for doubtful debts 130 Debtors 12,120 Creditors 6,471 Cash in hand Cash at bank 1,002 Stock as at 1 June 20x5 11,927 Equipment at cost 58,000 accumulated depreciation 19,000 Capital 53,091 216,770 216,770 The following additional information as at 31 May 20x6 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 doubtful debts to be increased by 40. (1) 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 20x6 and a balance sheet as at that date. (Association of Accounting Technicians)