Prepare the income statement as at 30 June 2013

4. The following trial balance has been extracted by the book-keeper of Paul Scott, who owns a small manufacturing business, as at 30 June 2013. Cr Capital 36,175 19,050 Drawings Purchases and sales 105,240 168,432 Stock at 1 July 2012 9,427 Debtors and creditors 3,840 5,294 VAT 1,492 Returns 975 1,237 643 Discounts 127 Wages and salaries 30,841 Motor vehicle expenses 1,021 Rent and rates 8,796 Heating and lighting 1,840 Telephone General expenses 355 1,752 Bad debts written off 85 Motor vehicle at cost 8,000 Provision for depreciation on motor vehicles 3,500 Shop fittings at cost Provision for depreciation on shop fittings 6,000 2,000 Provision for bad debts 150 Cash 155 Bank 21,419 218,923 Total 218,923 Notes as at 30 June 2013: 1. Stock was valued at 11,517. 2. Motor vehicles expenses owing 55 3. Rent prepaid 275. 4. Depreciate shop Fixtures and Fittings at 10% using the straight line method and motor vehicles at 25% employing the reducing balance method 5. The provision for bad debts is to be equal to 2.5% of debtors