Frank Brownisan antiquegift shop. Thefirmhas not beenkeepingstrictaccountingrecords.Thefollowingaccountingdetailswereobtainedas at December31, 2019 :

1.CashbookSummary

BankAccount

Commission

30,000

Balb/d

65000

Receiptfrom Debtors

45,000

Rent

40,000

SaleofoldEquipment

30,000

Insurance

22,500

Investment Income

22,500

Cash Purchases

48,500

CashSales

80,000

Payment toCreditors

27,000

Balc/d

107,000

Loan interest

5,000

Drawings

6,500

Purchaseof new equipment

70,000

Loan Repayment

30,000

314500

314500

2.List of Balances

1-Jan

31-Dec

Debtors

8,000

12,000

Creditors

3,500

7,200

Insurance prepaid

14,000

6,500

Rent owing

5,000

8,000

Commission Owing

6,000

4,500

InvestmentIncome Prepaid

1,200

4,800

EquipmentBook Value

150,000

180,000

Motor VehicleBook Value

180,000

165,000

BuildingBook Value

220,000

210,000

Stock

42,00

60,00

10%Loan

90,000

60,000

3.AdditionalInformation

a.Bad debtsof2,300waswritten off

b.Discountof 5,000wasreceived fromcreditors

c.Theoldequipmentthat wassold hada book valueof $20,000

Required:

a.Writeupthestatementof affairsas at January1, 2019

b.Draft thetrial balanceas atDecember31, 2019