The following trial balance was extracted from the accounting records of S.Martins as on December 31, 2020.

1. Closing stock on 31^st December 2020 was valued at sh.22,500
2. Depreciation is to be charged at 10% of cost of plant and machinery and 20% of cost of moto0r vehicles
3. Accrued rent is shs.3,000 and prepaid rates are sh.1,000
4. Outstanding electricity expense is sh.600
5. Provision for bad debts is to be increased by shs.300
6. Required

i)Prepare trading and profit and loss account for the year ending 31^st December 2020.

ii)Balance sheet as at that date.

DR sh CR sh 250,000 25,000 250,000 80,000 Capital Stock (11.1987) Plant & Machinery (cost) Motor vehicles (cost) Provision for depreciation of plant and machinery Provision for depreciation of motor vehicles Purchases 20,000 16,000 360,000 600,000 40,000 20,000 Sales Sales returns Purchases returns Wages and salaries Discounts Carriage inward Carriage outward Postage & telephone Water & electricity Bad debts w/o Provision for bad debts General expenses Rent & rates Debtors Creditors Cash in hand Cash at bank 60,000 5,000 2,500 3,000 7,500 8,600 1,500 1,000 8,500 15,000 55,000 46,600 6,000 30,000 957,600 957,600 You are given the following additional information