CALCULATE IN DETAILED PLS

Exercise 3: (30 pts) The following account balances were extracted from the books of A John at 31 December Year 3. Dr Cr Purchases and Sales 150,100 400,020 Stock 1 January Year 3 13,500 Returns Inwards and Outwards 1,280 2,140 Bad debts, written off 1,650 Motor vehicles at cost 60,000 Wages and salaries 40,000 Insurance 4,800 3,890 Office expenses The following additional information was available at 31 December Year 3: 1. Closing stock valued at cost 38,500 2. Insurance prepaid 1,200 3. Wages and salaries accrued 7,250 4. Provide for depreciation on Motor vehicles 25% on cost REQUIRED: Prepare The Trading and Profit & Loss Account for the ended 31 December Year 3