The following trial balance was extracted from the books of Rodney, a sole trader, at 31st December 2016: $ $. Capital 20,271 Drawings 2,148 Debtors 7,689 Creditors 10,462 Purchases 62,101 Sales 81,742 Rent and Rates 880 Light and heat 246 Salaries and wages 8,268 Bad debts 247 Provision for bad debts 326 Stock in trade 1st January 2016 9,274 Insurance 172 General Expenses 933 Bank balances 1,582 Motor van at cost 8,000 Provision for depreciation 3,600 Motor expenses 861 Building premises at cost 15,000 Rent received 1000 117,401 117,401

The following additional information as been provided at the end of the period: 1. Closing Stock as 31st December 2016 was Shs.9,884 2. Rates paid in advance at 31st December 2016, Shs.40 3. Lighting and heating due at 31st December 2016, sh.85 4. Provision for doubtful debts to be increased to Shs.388 5. Depreciation has been and is to be charged on vans at an annual rate of 20% on cost.

Required: Prepare income statement and statement of financial position for the year ended 31st December 2016.