1. The following balances are from the Ledger of Elgon a retail trader in Masaka District as at 31 December 20X 8. The assistant accountant who copied these balances did not indicate whether it is a debit or credit balance.

	$
Opening inventory	5,667,000
Purchases	52,476,000
Sales	96,405,000
Carriage inwards	1,143,000
Carriage outwards	1,417,500
Postage & Telephone	1,016,100
Return in wards	2,940,000
Return outwards	1,440,000
Trade receivables	9,540,000
Trade payables	3,000,000
Discount received	750,000
Cleaning expenses	900,000
Repairs & maintenance	600,000
Discount Allowed	654,000
Sundry operating expenses	11,430,000
Wages & salaries	20,826,000
Allowance for doubtful debts	546,000
Bad debts written off during the year	440,400
Rent paid	360,000
Office equipment at cost	7,170,000
Accumulated depreciation (office equipment)	2,661,000
Proceeds from the sale of office equipment	546,000
Office equipment additions during the year	1,590,000
Property rates paid	240,000
Free hold land	5,649,000
Capital	19,047,000

1. Prepare a Trial Balance as at 31 December 20X8 from the above list of balances assuming that there was nothing abnormal on the above accounts.

Additional notes

1. Closing inventory amounted to $6,780,000
2. Carriage inwards prepaid by $82,500; Sundry operating expenses were prepaid by $150,000 and accrued by $405,000; the rates for property were accrued by $60,000 and 22,500 accrued for carriage out wards. Salaries & wages prepaid by 52,500 and accrued by 30,000
3. During the year, equipment which had cost $975,000 with accumulated depreciation of 840,000, was sold for $450,000; Further bad debt of 240,000 is to be written off

4. Depreciate Office Equipment at 20% per annum on straight-line basis. Allow a full year charge in the year of purchase and none in the year of sale.

5. Let the provision for doubtful debts be maintained at 20% of the net receivables.

Prepare

2. Elgons Statement of comprehensive Income for the period ended 31 December 20X8.
3. The Statement of Financial Position as at 31 December 20X8