Castro Lenka has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at April 30 2007

Sh.

Capital	83,887
Sales	259,870
Trade Creditors	19,840
Returns outwards	13,407
Provision for doubtful debts	512
Discount allowed	2,306
Discount received	1,750
Purchases	135,680
Returns inwards	5,624
carriage outwards	4,562
Drawings	18,440
Carriage inwards	11,830
Rent, Rates and Insurance	25,973
Heating & Lighting	11,010
Postage, stationary and telephone	2,410
Advertising	5,980
Salaries & Wages	38,521
Bad debts	2,008
Cash in hand	534
Cash at bank	4,440
Stock at May 1, 2006	15,654
Trade Debtors	24,500
Furniture & Fittings	120,740
Provision for dep. For fixtures at April30, 2007	63,020
Depreciation for the year	12,074

Additional Information;

1. Stock at close of business was valued at 17,750=
2. Insurances have been prepaid by 1,120=
3. Heating & Lighting s accrued by 1,360=
4. Rates have been prepaid by 5,435=
5. The provision for bad debts is to be adjusted so that it is 3% of trade debtors

Required

Prepare Castro Lenkas Trading Profit and Loss account for the year ended April 30 April 2007 and Balance Sheet as at that date (20 Marks)