The following trial balance was extracted from the books of Adams Plc at the close of business on 31 December 2013.

Particulars	Debit (euro)	Credit (euro)
Purchases	7,520
Sales		13,160
Cash at bank	760
Cash in hand	140
Capital account 1 January 2000		6,600
Drawings	1,900
Furniture	960
Rent and rates	680
Wages and salaries	1,720
Discounts allowed/received	460	240
Debtors	3,280
Creditors		1,660
Stock 1 January 2013	1,980
Provision for bad debts 1 January 2013		180
Delivery van	1,600
Van running expenses	300
Bad debts written off	540
	21,840	21,840

Notes:

1. Closing stock on 31 December 2013 was euro 2,340,000.
2. Wages and salaries accrued at 31 December 2013 was euro 60,000.
3. The business is to make additional provision for bad debts amounting to euro 40,000.
4. The depreciation expenses for the year amounted to: Furniture euro 120,000; Delivery Van euro 320,000.

Required:

1. Prepare the trading, profit and loss account for the year ending 31 December 2013.
2. Prepare the balance sheet as at 31 December 2013.

Please do not copy from chegg otherwise i have to report the answer. Explain the answer throughly with showing each step of the calculation.