Q1

The following trial balance was extracted from the books of ABC Store on 31 December 20x5.

	DR	CR
	$	$
Sales		223,940
Returns inwards	1, 900
Returns outwards		970
Discount allowed	800
Discount received		2,970
Purchases	80,100
Stock	56,000
Rent and rates	60,500
Electricity	5,800
Debtors	45,700
Creditors		29,750
Bank	110,450
Motor vehicle at cost	100,000
Accumulated depreciation for motor vehicle		30,000
Provision for doubtful debts		5,420
Other expenses	7,500
Capital		185,200
Drawings	9,500	________
	478,250	478,250

The following additional information is provided:

1. Rent of $5,000 is prepaid.

2. Electricity of $650 and other expenses of $780 are accrued.

3. The depreciation charge for motor vehicle for the year is $10,000.

4. The proprietor took $12,000 cash and $1,000 worth of goods for own use. No entry was made in the books in respect of this.

5. The closing stock is $12,000.

6. Bad debts of $9,550 are to be written off.

7. A provision for doubtful debts of 10% is to be made on the remaining debtors balance.

Required:

Prepare the income statement of ABC Store for the year to 31 December 20x5 and the balance sheetas at that date.

Plz do it step by step