Inventory as at 30th March 2019	18,000
Capital		70,000
Cash at hand	2,400
Discount allowed	900
Salaries	1,300
Sales		47,200
Accounts payable		36,000
Land & Buildings	50,000
Furniture	18,000
Bank loan		20,000
Plant & Machinery	22,000
Accounts Receivables	25,000
Discount received		1,500
Returns outwards	2,200
Interest paid	850
Bad debts	650
Printing & Stationery	1,200
Purchases	32,000
Returns inwards	1,800
Wages	2,800
	176,900	176,900

The following is the Trial Balance for Mina Traders as at 30^th April 2020 (30 Marks) Particulars DR. CR.

Notes to the end year financial Report:

1. The inventory at hand on 30^th April 2020 was valued at 29,000
2. Outstanding Salary was 700
3. Wages paid in advance to employees was 1,200
4. Depreciate land & Buildings at 5%, and plant & machinery at 10% p.a using straight line method
5. Write off 1,000 for further Bad debts.

Required: (30 Marks)- Use no more than 300 words excluding the calculations for question (i) and (ii)

1. Prepare Mina Traders Income Statement (Trading, Profit & Loss Account) for the year ended 30^th April 2020 (10 Marks)
2. Prepare A balance sheet for Mina Traders as at 30^th April 2020 (10 Marks)
3. With relevant literature explain advance payments also known as prepayments. What accounting concept guided your treatment of the prepaid expenses. Demonstrate your answer with reference to your answer to the Income statement and the Balance sheet.(5 Marks)
4. With relevant literature explain outstanding payments also known as accruals. What accounting concept guided your treatment of the accrued expenses. Demonstrate your answer with reference to your answer to the Income statement and the Balance sheet.(5 Marks)