Q15.4 The following trial balance was extracted from the books of Percival Porteous at 31 May 20-0. Trial balance as at 31 May 20-0 Capital Drawings 54,960 8,280 Premises at cost 54,000 Sundry debtors and creditors 7,500 6,228 Opening stock 11,100 Salaries 5,280 Carriage inwards 2,190 Carriage outwards 2,340 Rates and insurance 2,790 Purchases and sales 102,000 145,185 Returns inwards and outwards 780 1,440 Advertising Bad debts 1,041 240 Rent receivable 960 Office equipment at cost 6,000 Shop fittings at cost 18,000 Provision for depreciation: Office equipment 1,200 Shop fittings 4,800 Cash in hand 1,020 Bank overdraft 7,488 Provision for bad debts 300 222,561 222,561 You are given the following additional information: (i) Stock valued at 31 May 20-0 12,600 (ii) Salaries due but unpaid 1,800 (iii) Rates and insurance prepaid 310 (iv) (v) The provision for bad debts is to be adjusted to 5% of debtors outstanding on 31 May 20-0 Depreciation is written off fixed assets as follows: Office equipment 10% per annum using the straight line basis Shop fittings 5% per annum using the reducing balance You are required to: Prepare Porteous's trading and profit and loss account for the year ended 31 May 20-0 showing clearly (a) the cost of goods sold (b) gross profit and net profit