John Reade Trial Balance as at 31 December 2015 Sales Returns Inwards Opening Inventory Purchases Returns Outwards Carriage Inwards Discount Received Income Statement Allowance for Doubtful Debts Insurance Salaries Rent Bad Debts Carriage Outwards Depn- Machinery Depn Motor Vehicles Machinery Motor Vehicles Accounts Receivable Bank Cash Accounts Payable 6% Loan Loan Interest Mortgage Capital Drawings Balance Sheet 3 22300 85432 285633 4545 13000 94500 24000 750 900 175000 80500 64350 123758 847 2750 52300 E 750245 20400 2450 1545 70000 40250 34952 $5000 55723 1030565 1030565 Additional information: 1 Inventory as at 31 December 2015 is worth 72300. 2 Allowance for doubtful debts is to be provided at 3% of Accounts Receivable. 3 The company provides for depreciation as follows: Machinery at 10% on a straight line basis. Motor Vehicles at 30% using the reducing balance method. 4 Insurance includes a prepayment of 1000. 5 Salaries of 7500 are owed to the company's employees. 6 There are 2 months interest owing on the loan which is repayable on 31 July 2016. Trial Balance Income Statement for John Reade for the year eding 31st December 2015 Sales Less: Returns Inwards Cost of Sales Opening Stock Purchases Carriage Inwards Less: Returns Outwards Less: Closing Stock GROSS PROFIT Add Discounts Received Less Expenses: Carriage Outwards Discounts allowed Motor Expenses (Prepayment) Shop Expenses Wages (Accrual) Equipment Depreciation Income Statement NET PROFIT 0 0 Balance Sheet 0 0 0