Prepare the Trial balance, Profit & Loss Account, and Balance Sheet incorporating the adjustment entries.

Ledger Balances	(SR)
Opening stock	6 000
Capital	40 000
Salary	6 000
Drawings	6 000
Carriage inwards	1 000
Carriage outwards	500
Return inwards	800
Return outwards	500
Loan given to X	3 000
Loan taken from Y	5 000
Rent expense	1 200
Rent outstanding	100
Purchases	60 000
Accounts Receivable	30 000
Accounts payable	13 000
Advertisement expense	3 000
Liability of other expenses	2 900
Bad debt	500
Discount received	300
Discount allowed	600
Cash	2,200
Furniture	3 000
Goodwill	5 000
Wages	100
Sales	73 700
Insurance premium	600
Rent from subletting	500
Bank	6 500

Adjustment entries:

1. Closing stock SR 9 500
2. Provide depreciation on furniture @10%
3. Loan to X carries 8% interest per annum.
4. Loan from Y carries 6% interest per annum.
5. Provide 5% reserve for bad and doubtful debts