Veronica, a sole trader.
Trial Balance as at 31 May 2019
Dr
Cr
GHC
GHC
Sales & Purchases
82,350
138,078
Carriage
5,144
Drawings
7,800
Rent, rates and insurance
6,622
Postage and stationery
3,001
Advertising
1,330
Salaries and wages
26,420
ad debts
877
Provision for doubtful debts
130
Debtors & Creditors
12.120
6471
Cash at bank
1:179
Stock as at 1 June 2018
11.927
Equipment at cost
58.000
accumulated depreciation
19.000
19000
53.091
216.770
216.770
Nex
The following additional information as at 31 May 2019 is available:
(a) Rent is accrued by GHC210,
(b) Rates have been prepaid by GHC880.
(c) GHC2,211 of carriage represents carriage inwards on purchases.
Equipment is to be depreciated at 15% per annum using the straight-line method
(e) The provision for doubtful debts to be increased by GHC40,
(f) Stock at the close of business has been valued at GHC13,551.
Required
Prepare an income statement for the year ended 31 May 2019 and a statement of financial position as at that date.