ABC Traders Additional information 1. Adjust provisions for bad debts to 2% of debtors. 2. Provide 20% depreciation on the book value of cars and lorries, and 15% on the cost of furniture and fittings. Revalue loose tools at Shs. 5,800 . 3. Accrued salaries Shs.4, 100, Telephone Shs.1, 250 and Rates Shs. 850. 4. Prepaid insurance, Shs.1, 100, unused postage stamps. Shs. 100 . Page 1 5. Rent received in advance, Shs.2, 800 . 6. Commission accrued, Shs.3, 900. 7. Stock on 31 December 20.1, Shs. 48,900 . Getting started: 1. Identify the incomes and expenses from the trial balance 2. Read through the additional information to identify the adjustments needed 3. Compile the income statement 4. Identify the assets and the liabilities then compile the statement of financial position. ABC Traders Additional information 1. Adjust provisions for bad debts to 2% of debtors. 2. Provide 20% depreciation on the book value of cars and lorries, and 15% on the cost of furniture and fittings. Revalue loose tools at Shs. 5,800 . 3. Accrued salaries Shs.4, 100, Telephone Shs.1, 250 and Rates Shs. 850. 4. Prepaid insurance, Shs.1, 100, unused postage stamps. Shs. 100 . Page 1 5. Rent received in advance, Shs.2, 800 . 6. Commission accrued, Shs.3, 900. 7. Stock on 31 December 20.1, Shs. 48,900 . Getting started: 1. Identify the incomes and expenses from the trial balance 2. Read through the additional information to identify the adjustments needed 3. Compile the income statement 4. Identify the assets and the liabilities then compile the statement of financial position