The following trial balance was extracted from the books of Segun Enterprises as at 31^st December, 2007.

Dr

cr

Stock

34,000

Sales

384,680

Purchases

334,360

Carriage inwards

840

Carriage outwards

3,150

Returns outwards

1,280

Wages and salaries

24,480

Rent

6,030

Rates

2,320

Communication expenses

1,200

Telephone

80

Commission payable

400

Insurance

800

Sundry expenses

6,100

Buildings

40,640

Debtors

28,000

Creditors

36,000

Fixtures

5,700

Cash at bank

5,950

Cash in hand

2,240

Loan from Daudu

20,000

Drawings

13,240

Capital

67,250

Interest received

320

509,530

509,53

Additional information:

1.Stock at close was #64,000

2.Depreciation at cost: Fixtures 10%

3.Bad debt written off #300

4.Provision for discount on debtors 5%. Create bad debt provision of 2%

5.Telephone owing #20

6.Sundry expenses in advance #30

7.Interest owing #40

8.The owner withdrew goods worth #500

You are required to prepare:

Trading and profit and loss account for the year ended 31^st December, 2007 and Balance Sheet as at that date.