The following Trial Balance of Michael Bolton has been prepared by an inefficient bookkeeper. You are required to correct it:-

Trial Balance for the period ended 28/02/1998

Dr. Cr.

$ $

Capital 33,000

Premises 27,000

Drawings 4,750

Plant 14,850

Stock (February 1) 4,500

Office Furniture (February 1) 3,500

Insurance 425

Salaries 9,950

Commission Received 800

Bank Loan 5,000

Bank 3,250

Bad Debt 325

Discount allowed 450

Debtors and Creditors 3,100 2,900

Return Inwards 400

Return Outwards 200

Purchases and Sales 28,500 61,250

Rent Paid 2,150_______________

88,300 118,000

Notes

1. Stock February 28 $6,500.

2. Insurance prepaid $25.

3. Rent owing $550.

Required: Prepare a Trading and Profit and Loss Account and Balance Sheet for Mr. Bolton