Example 2 David Dolgellau, a sole trader has prepared the following balance as at 31 March 2020 Sales Discount Received Rent Received Returns outwards Creditors Bank Overdrani Capital Purchases Salaries and Wages Office expenses Insurance premiums Electricity Stationery Advertising Telephone Business Rates Discounts allowed Returns towards Stocks as at 1 April 2000 Warehouse, shop and office Fixtures and fittings Debtors Cash in till Drawings 378,500.00 2.400.00 7,500.00 7,700.00 18,700,00 30,000.00 287,500.00 261.700.00 45,700,00 8,400.00 3.100.00 1.600.00 6,200.00 8,400.00 2.100,00 7.500,00 600.00 4,100.00 120,600.00 210,000.00 12,800.00 13,000.00 500.00 26,000.00 The following further information was obtained: Closing stock was 102,500.00 Electricity charges accrued 700.00 Advertising expenses accrued 500.00 Insurance premiums paid in advance 900.00 Business rates prepaid 1,500.00 Required: Prepare a trial balance, income statement for the year ended 31 March 2020 and the statement of financial position as at that date. Example 3 (a) The following balances were extracted from the books of Abdi Traders Ltd as at 30 September 2020 Sh. Ordinary shares of Sh.20 each. Fully paid Sh 600,000