Trial Balance for Enterprise Print for the year ended 31 December 2021 Sales 350,000 Sales returns 20,000 Premises : cost 200,000 : opening cumulative depreciation 5,000 Vehicle : cost 120,000 : opening cumulative depreciation 12,000 Purchases 110,000 Purchase returns 10,000 Light and heat 15,000 Rent 15,000 Bank 100,000 Insurance 6,000 Trade debtors /Receivables 15,000 Bad debts written off during the year 4,000 Bad debt provision (1 January 2021) 250 Trade Creditors/payables 20,000 Loan interest paid 5,000 Long term loan 110,000

Notes

1. The vehicles are depreciated at 20% per annum on a reduced-balance basis.

2. Premises are depreciated at 1% per annum on a straight-line basis.

3. The trade debtors figure of 15,000 includes the bad debts of 4,000 and is before any provision. Analysis of the debts shows that additional bad debt of 500 should be written off.

4. After dealing with (3) the bad debt provision is to be maintained at 5% of debts.

5. Enterprise Print propose to pay a dividend of 10,000.

6. The tax for the year is 13,250, of which 6,600 was outstanding at 31 December 2021

7. The rent is paid yearly in advance on 1 February.

8. On 1 January 2021, there were 100,000 inventories and on 31 December 2021 there were inventories valued 80,000 unsold.

Required: 1. Prepare the Income Statement for Enterprise Print for the period ended 31 December 2021 (30 Marks)

2. Prepare the Statement of financial position for the period ended 31 December 2021 (30 marks)