The following trial balance has been extracted from the ledger of Peterson, a sole trader, as at 31 May 2019, the end of his most recent financial year.

Peterson

Trial Balance As At 31 May 2019

Dr

Cr

Kshs

Kshs

Property at cost

90,000

Equipment at cost

57,500

Provision for depreciation (as at 1 June 2018)

Property

12,500

Equipment

32,500

Stock as at 1 June 2018

27,400

Purchases

259,600

Sales

405,000

Discounts allowed

3,370

Discounts received

4,420

Wages and salaries

52,360

Bad debts

1,720

Loan interest

1,560

Carriage out

5,310

Other operating expenses

38,800

Trade debtors

46,200

Trade creditors

33,600

Provision for bad debts

280

Cash on hand

151

Bank overdraft

14,500

Drawings

28,930

13% loan

12,000

Capital, as at 1 June 2018

______

98,101

612,901

612,901

The following additional information as at 31 May 2019 is available:

(a)Stock as at the close of business was valued at Kshs 25,900.

(b)Depreciation for the year ended 31 May 2019 has yet to be provided as follows:

Property -1% using the straight-line method

Equipment-15% using the straight-line method

(c)Wages and salaries are accrued by Kshs140.

(d)Other operating expenses include certain expenses prepaid by Kshs 500. Other expenses included under this heading are accrued by Kshs 200.

(e)The provision for bad debts is to be adjusted so that it is 0.5% of trade debtors as at 31 May 2019.

(f)Purchases include goods valued at Kshs1,040, which were withdrawn by Mr Peterson for his own personal use.

Required:

i)Statement of Profit or Loss for the period ended 31^st May 2019

ii)Statement of Financial Position as at 31^st May 2019