You should prepare both statements from the following trial balance. There should be adjustments made in the Statement of Comprehensive Income and the Statement of Financial Position. All financial statements must be accurate and presented in a professionally accepted vertical format.

You should then extract relevant data from these statements and, using a range of financial ratios, analyses the performance of the business relating to profitability, efficiency, and effectiveness.

Finally, you should recommend ways to improve the financial performance of the business. The recommendations will be logically consistent with the outcome of the ratio analysis.

Name of the Account	Debit - Dhs	Credit - Dhs
Capital		27000
Drawings	4260
Furniture	5700
Stock on January 01 2019	8760
Purchases and Sales	62172	71436
Returns	1260	1746
Salaries	2640
Rent	720
Carriage	1500
Rates and Taxes	1200
Apprentice Premium		750
Bank Overdraft		1200
Bad Debts	1032
Sundry Debtors	19200
Cash in Hand	288
Sundry Creditors		6000
Provision for Bad Debts		600
Bills Receivable	1440
Bills Payable		1080
Discount		360
Total	110172	110172

You are required to consider the following adjustments:

Stock on December 31, 2019 was valued at Dhs. 10,200. Provide for doubtful debts at 5% on Sundry Debtors and for Discount on Creditors at 2%. The Rent due was Dhs. 160 and Taxes of Dhs. 320 were paid in advance. Depreciate Furniture at 10% per annum and Apprentice Premium of Dhs. 120 was to be carried forward. The interest on capital is calculated at 5% per annum.

After preparing the above, you have been provided the following trial balance for the preparation of a Statement of comprehensive income and Statement of financial position.

Manipulated Trail Balance

Name of the Account	Debit - Dhs	Credit -Dhs
Capital		37000
Drawings	9260
Furniture	17700
Stock on Jan,01,2019	8760
Purchases and Sales	67172	91436
Returns	1260	1746
Salaries	7640
Rent	720
Carriage	1500
Rates and Taxes	2000
Apprentice Premium		750
Bank Overdraft		2000
Bad Debts	1032
Sundry Debtors	22200
Cash in Hand	288
Sundry Creditors		6000
Provision for Bad Debts		600
Bills Receivable	1440
Bills Payable		1080
Discount		360
	140972	140972

Stock on December 31, 2019 was valued at Dhs. 10,200. Provide for doubtful debts at 5% on Sundry Debtors and for Discount on Creditors at 2%. The Rent due was Dhs. 160 and Taxes of Dhs. 320 were paid in advance. Depreciate Furniture at 10% per annum and Apprentice Premium of Dhs. 120 was to be carried forward. The interest on capital is calculated at 5% per annum.