Q1
The following trial balance was extracted from the books ofABC Store on 31 December 20x5.
| DR | CR |
| $ | $ |
Sales | | 223,940 |
Returns inwards | 1, 900 | |
Returns outwards | | 970 |
Discount allowed | 800 | |
Discount received | | 2,970 |
Purchases | 80,100 | |
Stock | 56,000 | |
Rent and rates | 60,500 | |
Electricity | 5,800 | |
Debtors | 45,700 | |
Creditors | | 29,750 |
Bank | 110,450 | |
Motor vehicle at cost | 100,000 | |
Accumulated depreciation for motor vehicle | | 30,000 |
Provision for doubtful debts | | 5,420 |
Other expenses | 7,500 | |
Capital | | 185,200 |
Drawings | 9,500 | ________ |
| 478,250 | 478,250 |
The following additional information isprovided:
1. Rent of $5,000 isprepaid.
2. Electricity of $650 andother expenses of $780 are accrued.
3. The depreciation charge formotor vehicle for the year is $10,000.
4. Theproprietor took $12,000 cash and $1,000 worth of goods for own use.No entry was made in the books in respectof this.
5. The closing stock is$12,000.
6. Bad debts of $9,550 are tobe written off.
7. Aprovision for doubtful debts of 10% is to be made on the remainingdebtors’ balance.
Required:
Prepare the incomestatement of ABC Store for the year to 31 December 20x5 andthe balancesheetas atthat date.
Plz do it stepby step
