Below is the trial balance of Gloria's Greengrocers at $5$ April $2023$:

Trading Accounts: Debit $()$ Credit $()$

Sales $1,392,000$

Opening Inventory $5,850$

Purchases $863,000$

Carriage Inwards $1,430$

Other Revenues & Expenses:

Income From Flower Arranging Services $18,361$

Rent $28,944$

Insurance $5,126$

Advertising Expense $2,938$

Heating & Lighting $4,168$

Shop & Office Expenses $23,748$

Salaries & Wages $368,112$

Discounts Allowed $1,980$

Carriage Outwards $218$

Balance Sheet Accounts:

Fixtures & Fittings At Cost $312,000$

Fixtures & Fittings $$ Accumulated Depreciation At $06/04/202296,000$

Motor Vehicles At Cost $84,000$

Motor Vehicles $$ Accumulated Depreciation At $06/04/202252,200$

Receivables $3,646$

Allowance For Irrecoverable Receivables $($At $04/04/2022)716$

Bank $33,371$

Payables $23,256$

Loan $18,000$

Capital $147,998$

Drawings $9,400$

Total $1,748,5311,748,531$

The following information is relevant:

The closing inventory at $5$ April $2023$ is valued at $4,974.$

On $5$ December $2022,$ Gloria sold a motor vehicle for $4,820.$ The customer was due to pay Gloria on $5$ April $2023$ but only paid half of the amount due by cheque on the last day of the accounting year. Nothing regarding the disposal transaction, including any cash received, has been recorded in the accounts. This motor vehicle had been bought on $6$ October $2021$ for $6,572.$

On $5$ February $2023,$ Gloria bought a new motor vehicle for $12,000$ on credit terms. The credit entry was correctly dealt with but Gloria mistakenly debited Fixtures and Fitting at cost$.$

Depreciation on motor vehicles is provided at $25\%$ per annum using the reducing balance basis on a monthly pro$-$rata basis. Depreciation on fixtures, fittings and equipment is provided at $15\%$ per annum on the straight line basis, assuming no residual value. There were no purchases or disposals of fixtures, fittings, and equipment during the year.

Gloria estimates that $1,864$ due from customers will be irrecoverable and must be written off.

The allowance for receivables is to be set at $4\%$ of net receivables at $5$ April $2023.$

Rent includes a prepayment of $580.$

The heating bill will arrive on $5$ May $2023$ and $390$ is expected to relate to the period ended $5$ April $2023.$

An accrual of $474$ is needed for insurance.

The long$-$term loan is repayable in $10$ years$$ time. Interest payable on the loan is $5\%$ and will be paid once per year.

Prepare the income statement for Gloria's Greengrocers for the period ended $5$ April $2023.$ Your answer should only be in round pounds. Show your workings, including a full non$-$current assets note.

Prepare the balance sheet for Gloria's Greengrocers as at $5$ April $2023.$ Show your workings. Your answer should only be in round pounds. Show your workings, including a full non$-$current assets note.

Explain the difference between accrued and prepaid expenses.

Briefly explain the adjustments needed at the period$-$end for accrued expenses and prepaid expenses to prepare $$true and fair$$ financial statements. You must illustrate$/$support your explanation with examples using dates and figures. $($Your answer should not involve double$-$entries nor T$-$accounts but should indicate the effect of the adjustments on the income statement and the balance sheet at the period$-$end. Your answer should also not include any discussion on the meaning of $$true and fair$$ financial statements.$)$