Sole trader The following balances were extracted from the books of Marshall Company on 31 March Additional information 2019. Marshall is in the import business. 1 Stock at 31 March 2019 was valued at $12 600. Sales 95 800 Purchases 48 340 The motor vehicle is used to bring purchases to the business premises Returns outwards 960 and to deliver goods to customers. The motor vehicle is used 20 % of the Stock (Inventory) at 1 April 2018 10 780 time to collect purchases and 80 % to deliver goods to customers. Wages of motor vehicle driver 11 500 Motor vehicle running expenses 6 500 3 Depreciation is to be charged on the premises at the rate of 2 % per annum Motor vehicles at cost 20 000 on cost using the straight-line method and on the motor vehicle at 20 % Provision for depreciation of motor vehicle at 1 April 2018 15 000 per annum using the diminishing (reducing) balance method. Premises 60 000 Provision for depreciation of premises at 1 April 2018 12 000 1 The loan interest is outstanding at 31 March 2019. Rent and insurance 7 700 Light and heat 4 950 5 Insurance, $450, was prepaid at 31 March 2019. General and marketing expenses 6 200 Discount received 5 300 6 Electricity for lighting, $130, was due at 31 March 2019. Provision for doubtful debts 560 8 % Bank loan repayable 30 June 2021 30 000 7 The provision for doubtful debts is to be maintained at 2 % of debtors. Cash 270 Bank overdraft 1 680 REQUIRED Debtors (Trade Receivables) 18 500 Creditors (Trade Payables) 9 750 (a) Prepare the trading and profit and loss account for Marshall Company for Drawings 11 310 the year ended 31 March 2019 Capital at 1 April 2018 35 000 (b) Prepare the balance sheet of Marshall Company at 31 March 2019