prepare adjusting entries, income statement and balance sheet

adjusting entries are important

Cr. Rs. 138,078 Question-3 The following trial balance has been extracted from the ledger of Mr. Yousaf, a sole trader. Trial Balance as at 31 May 20X6 Particulars Dr. Sales Rs. Purchases 82,350 Carriage 5,144 Drawings Rent, rates and insurance 7.800 6,622 Postage and stationery 3,001 Advertising Salaries and wages 1,330 26,420 Bad debts 877 Provision for doubtful debts Debtors 12,120 Creditors Cash in hand 177 Cash at bank 1,002 Stock as at 1 June 20x5 11,927 130 6,471 Equipment Al cost 58,000 Accumulated depreciation 19,000 Capital 53,091 216,770 216,770 The following additional information as at 31 May 20x6 is available: (a) Rent is accrued by Rs.210. (b) Rates have been prepaid by Rs.880. (c) Rs.2,211 of carriage represents carriage inwards on purchases. (d) Equipment is to be depreciated at 15% per annum using the straight line method. (e) The provision for doubtful debts to be increased by Rs.40. Stock at the close of business has been valued at Rs.13,551. Required: Prepare a trading and profit and loss account for the year ended 31 May 20x6 and a balance sheet as at that date