The following Trial Balance has been extracted from the ledger of Mr. Yousef, a sole trader. Dr. Cr. GH¢ GH¢ Sales 138,078 Purchases 82,350 Carriages 5,144 Drawings 7,800 Rent, rates and insurance...

The following Trial Balance has been extracted from the ledger of Mr. Yousef, a sole trader.

                                                                        Dr.                               Cr.

                                                                        GH¢                            GH¢

Sales                                                                                                    138,078

Purchases                                                        82,350

Carriages                                                           5,144

Drawings                                                           7,800

Rent, rates and insurance                                  6,622

Postage and Stationery                                     3,001

Advertising                                                       1,330

Wages and Salaries                                         26,420

Bad Debts                                                            877

Provision for Bad Debts                                                                     130

Debtors                                                           12,120

Creditors                                                                                             6,471

Cash in hand                                                        177

Cash at Bank                                                     1,002

Stock as at 1^st
June, 1995                                11,927

Equipment: at Cost                                         58,000

Accumulated depreciation                                                                  19,000

Capital                                                                                                 53,091

                                                                        216,770                       216,770

The following additional information as at 31st May, 2006 is available.

1. Rent is accrued by GH¢210.


2. Rates have been prepaid by GH¢880.


3. GH¢2,211 of carriage represents carriage purchases.


4. Equipment is to be depreciated at 15% per annum, using reducing balance method.


5. The provision for Bad debts to be reduced by GH¢40.


6. Stock at the close of business has been valued at GH¢13,551.

Required:

Prepare trading and profit and loss accounts for the year ended 31^st
May, 2006 and a balance sheet as that date.