84,000 2. K.K. Menasha is in business as a trader. A trial balance taken out as on 31" January, 2006, was as follows: GHe GHE Purchases Sales 100,480 Return inwards& outwards 272 696 Salaries & wages 8,200 Rent & rates 1,720 Sundry Expenses 1,500 Insurance. 800 2 268 560 27,260 Bad Debts Provision for bad debts-1 Feb. 2005 Stock on hand-1* Feb. 2005 Fixtures & Fittings: -1 February, 2005 - Additions on 30th September, 2005 Motor Vehicle: -1 February, 2005 -Sales of vehicle (NBV 1/2/05, 4160) 2,800 480 1,840 240 Sundry Debtors & Creditors Cash at Bank & in hand Capital Account Drawings Account 9,220 7,704 7,640 41,520 5,200 151,200151,200 You are required to prepare Statement of Profit or Loss for the year ended 31" January 2006, and draw up a Statement of Position as at that date. The following information is to be taken into account 1. Outstanding amounts not entered in the books were: Rent 72, sundry expenses 180. 2. Prepayments were: Rates 120, Insurance 20 3. Stock on hand on 31" January 2006 was valued at $30,900. 4. Provision for doubtful debts is to be 680 5. Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a