Q5 The following trial balance was extracted from the books of Albert Brown, a retailer as at 31 December 2017 Debit Credit Capital Account 110,000 Leasehold Premises at cost 65,000 Wages 6,100 Stationery 520 Trade Receivables 28,800 Trade Payables 17.427 Fittings at cost 28,400 Lighting and healing 1.280 Inventory (1/1/2017) 20,310 Postage and telephone 917 Motor Vans at cost 10,000 Bad debts written off 450 Cash at Bank 6,780 Motor Van Expenses 2,850 Purchases 193,855 Revenue 232,600 Bank Term Loan 10,000 Investments (market value 6,000) 6.500 Advertising 3,000 Carriage Inwards 2,750 Rent and Rates 3.220 Drawings 11.200 Bank Interest 725 Investment Income 500 Bad Debt Provision 1.890 Provision for Depreciation: Leasehold Premises 6,340 Motors Vans 4,600 Fittings 9.300 392,657 392.657 The following matters are to be taken into account. (1) Inventory 31/12/2017 23,700 (2) Wages due but unpaid at 31/12/2017 250 (3) Rent paid in advance at 31/12/2017 400 (4) Provision for Bad Debts is to be calculated at 5% of Trade Receivables. (5) An adjustment should be made because the benefit of the amount expended on advertising during 2017 is expected to accrue evenly over 2017 and 2018 (6) In mid-December a Motor Van, costing 2,000 and on which depreciation of 600 had been accumulated was sold for 1,500. A replacement van was purchased for 3,000. These transactions had not been recorded in the books by 31" December 2017 nor had any cash been paid or received (7) During the year Mr Brown took goods valued at 3,500 (cost price) for private purposes, no records were maintained in the books. (8) Depreciation is to be provided as follows: Leasehold Premises 5% p.a. on reducing balance Fittings 10% pa on a straight line basis. Motor Vans 20% on a straight line basis. A full year depreciation is to be provided for fixed assets on the books at 31* December 2017 Required A comprehensive income statement for 2017 and a financial position statement as at 31st December 2017