The following trial balance was extracted from the books of Rodney, a sole trader, at 31"'Dec 2020 Shs Shs. 2,148 7,689 62,101 880 20,271 5,462 81,742 246 8,268 247 326 Drawings/Capital Debtors/Creditors Purchases/Sales Rent and Rates Light and heat Salaries and wages Bad debts Provision for bad debts Stock in trade 31st Dec 2019 Insurance General Expenses Bank balances Motor van at cost/Provision for depreciation Proceeds on sale of van Motor expenses Freehold premises at cost Rent received Provision for depreciation on buildings 9,274 172 933 1,582 8,000 3,6000 250 861 15,000 750 5,000 117,401 117,401 The following matters are to be taken in to account: 1. Stock in trade at 31st December 2020 was Shs. 9,884 2. Rates paid in advance at 31" December 2020, Shs.40 3. Rent receivable due at 31st December 2020, Shs.250 4. Lighting and heating due at 31 December 2020, sh.85 5. Provision for doubtful debts to be increased to Shs.388 6. Included in the amount for insurance Shs. 172, is an item for Shs82 for motor insurance and this amount should be transferred to motor expenses. 7. Depreciation has been and is to be charged on vans at an annual rate of 20% on cost. 8. Depreciate buildings Shs.500 Required: An income statement for the year ended 31st December 2020 and a Balance Sheet. (20 Marks)