Q3 a) You are given the following Trial Balance for J Bloggs Limited for the year ended 31 December 2016. Apply the following post trial balance adjustments and prepare the Profit & Loss Account and Balance Sheet for the year ended 31 December 2016. (18 Marks) '000 '000 Dr Cr 280 Sales Opening Stock Purchases Wages Insurance Rent & Rates Telephone Power General Expenses Plant & Machinery Bank Trade Debtors Trade Creditors Other Creditors Share Capital Profit & Loss Account b/f 12 144 60 24 12 6 12 6 180 4 23 36 19 10 138 483 148 1. Insurance has been prepaid by 2k 2. Accrue Audit fees of 5k 3. Rent & Rates have been prepaid by 3k 4. Closing stock of materials is valued at 5k 5. Annual depreciation on plant & machinery should be charged on a straight line basis over 5 years 6. The company is subject to a legal claim from a customer for loss and expense for the supply of a defective part. The claim is estimated to cost the company 10k in settlement to the customer and 5k in legal costs