Required: Prepare the trading and profit and loss accounts for the year ended 31 March 20x9 together with a balance sheet as at that date. 28.11 This question also relates to extended trial balances (see Exhibit 28.2) From the following trial balance of John Brown, store owner, prepare a trading account and profit and loss account for the year ended 31 December 20X7, and a balance sheet as at that date, taking into consideration the adjustments shown below: Trial Balance as at 31 December 20x7 Dr f Cr f 400,000 350,000 5,000 6,200 100,000 800 Sales Purchases Sales returns Purchases returns Opening stock at 1 January 20X7 Provision for doubtful debts Wages and salaries Rates Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts Capital Bank balance Drawings 30,000 6,000 1,000 40,000 30,000 9,800 200 7,000 179,000 3,000 18,000 593,000 593,000 359 (i) Closing stock at 31 December 20x7 120,000. (ii) Accrued wages 5,000. (iii) Rates prepaid 500. (iv) The provision for doubtful debts to be increased to 10 per cent of debtors. (1) Telephone account outstanding 220. (vi) Depreciate shop fittings at 10 per cent per annum, and van at 20 per cent per annum, on cost. 28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. Trial Balance as at 31 May 20X6 Dr f Cr f 138,078 82,350 5,144 7,800 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts 6,622 3,001 1,330 26,420 877 333 Part 4. Adjustments for financial statements Provision for doubtful debts 130 Debtors 12,120 Creditors 6,471 Cash in hand 177 Cash at bank 1,002 Stock as at 1 June 20x5 11,927 Equipment at cost 58,000 accumulated depreciation 19,000 Capital 53,091 216,770 216,770 The following additional information as at 31 May 20x6 is available: (a) Rent is accrued by f210. (b) Rates have been prepaid by 880. (0) 2,211 of carriage represents carriage inwards on purchases. (d) Equipment is to be depreciated at 15% per annum using the straight line method. (e) The provision for doubtful debts to be increased by 40. (f) Stock at the close of business has been valued at 13,551. Required: Prepare a trading and profit and loss account for the year ended 31 May 20x6 and balance sheet as at that date