28.13 Mr Chai has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 20X7, the end of his most recent financial year. Capital 83,887 Sales 259,870 Trade creditors 19,840 Returns out 13,407 Provision for doubtful debts 512 Discounts allowed 2,306 Discounts received 1,750 Purchases 135,680 Returns inwards 5,624 Carriage outwards 4,562 Drawings 18,440 Carriage inwards 11,830 Rent, rates and insurance 25,973 Heating and lighting 11,010 Postage, stationery and telephone 2,410 Advertising 5,980 Salaries and wages 38,521 Bad debts 2,008 Cash in hand 534 Cash at bank 4,440 Stock as at 1 May 20X6 15,654 Trade debtors 24,500 Fixtures and fittings - at cost 120,740 Provision for depreciation on fixtures and fittings - as at 30 April 20X7 63,020 Depreciation 12,074 The following additional information as at 30 April 20X7 is available: (a) Stock at the close of business was valued at 17,750. (b) Insurances have been prepaid by 1,120. (c) Heating and lighting is accrued by 1,360. (d) Rates have been prepaid by 5,435. (e) The provision for doubtful debts to be adjusted so at it is rade debtors. Required: Prepare Mr Chai's trading and profit and loss account for the year ended 30 April 20X7 and a balance sheet as at that date