K.K. Menasha is in business as a trader. A trial balance taken out as on 31 st January, 2006, was as follows: GH¢ GH¢ Purchases 84,000 Sales 100,480 Return inwards& outwards 272 696 Salaries & wages...

1. K.K. Menasha is in business as a trader. A trial balance taken out as on 31^st
   January, 2006, was as follows:

                                                                              GH¢                        GH¢

Purchases                                                            84,000

Sales                                                                                                   100,480

Return inwards& outwards                                       272                    696

Salaries & wages                                                    8,200

Rent & rates                                                           1,720

Sundry Expenses                                                     1,500

Bad Debts                                                                  268

Provision for bad debts-1^st
Feb. 2005                                                560

Stock on hand-1^st
Feb. 2005                                   27,260

Fixtures & Fittings:

            -1^st
February, 2005                                        2,800

            -Additions on 30^th
September, 2005               480

Motor Vehicle:

            -1^st
February, 2005                                          1,840

            -Sales of vehicle (NBV 1/2/05, ¢160)                                         240

Sundry Debtors & Creditors                                         9,220              7,704

Cash at Bank & in hand                                                7,640

Capital Account                                                                                     41,520

Drawings Account
5,200
_______

151,200
151,200

You are required to prepare Statement of Profit or Loss for the year ended 31^st
January 2006, and draw up a Statement of Position as at that date.

The following information is to be taken into account.

1. Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180.


2. Prepayments were: Rates ¢120, Insurance ¢20


3. Stock on hand on 31^st
   January 2006 was valued at ¢30,900.


4. Provision for doubtful debts is to be ¢680


5. Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.