Activity 1: Compulsory The following is Musa's trial balance at 31 March 2011: DRE CRE 4,000 20,500 3,600 Bank Capital Accumulated depreciation (at 1/4/2010): Furniture Drawing Electricity Furniture at cost Insurance Misc. expenses Provision for bad & doubtful debts (at 1/04/2010 Purchases Sales Inventory (at 1/4/2010) Trade Payables Trade receivables Total 10,000 2000 9,000 1,500 65,800 1200 80,000 150,000 10,000 20,000 21,000 199.300 199.300 Additional information: 1. Inventory/ Stock at 31 March 2011: 15 000. 2. At 31 March 2011 there was a specific bad debt of 6000. This was to be written off. 3. Furniture is to be depreciated at a rate of 10% on cost. 4. At 31 March 2011 Musa owes the electricity 600, and 100 had been paid in advance for insurance. 5. The provision for bad and doubtful debts is to be set at 10 per cent of trade debtors as at the end of the year. Required: Prepare Musa's trading and profit and loss account for the year to 31 March 2011 and a balance sheet as at that date