Unfortunately, your question appears to provide information and adjustments for preparing financial statements but lacks specific account balances. To help you properly, I need the balance amounts for various accounts such as Sales, Purchases, Opening Stock, various Expenses (including Wages, Salaries, Rent, Insurance, Depreciation, etc.), and any other relevant financial information.
However, I can guide you on how to proceed with preparing a Trading Profit and Loss Account and a Balance Sheet given such information:
### Trading Profit and Loss Account
#### Trading Section:
1. Opening Stock
2. Add: Purchases [tex]\( \quad \text{(Net of Returns)} \)[/tex]
3. Less: Closing Stock [tex]\( \quad \text{(Give it was valued at K16000)} \)[/tex]
This yields the Cost of Goods Sold (COGS).
4. Sales [tex]\( \quad \text{(Net of Returns)} \)[/tex]
5. Less: Cost of Goods Sold
This gives the Gross Profit.
#### Profit and Loss Section:
6. Add: Gross Profit
7. Less: Operating Expenses (including Adjustments)
- Outstanding Wages [tex]\( \quad \text{(K2000)} \)[/tex]
- Outstanding Salaries [tex]\( \quad \text{K1200} \)[/tex]
- Outstanding Rent [tex]\( \quad \text{K2000} \)[/tex]
- Depreciation on Building (5%)
- Depreciation on Machinery (10%)
- Prepaid Insurance; adjust this [tex]\( \quad \text{(K200)} \)[/tex].
This will provide the Net Profit.
### Balance Sheet
#### Liabilities:
1. Outstanding Expenses:
- Wages [tex]\( \quad \text{(K2000)} \)[/tex]
- Salaries [tex]\( \quad \text{K1200} \)[/tex]
- Rent [tex]\( \quad \text{K2000} \)[/tex]
#### Assets:
1. Closing Stock [tex]\( \quad \text{(K16000)} \)[/tex]
2. Prepaid Insurance [tex]\( \quad \text{K200} \)[/tex]
3. Building (less Depreciation by 5%)
4. Machinery (less Depreciation by 10%)
And other relevant assets and liabilities.
### Notes:
1. Remember to adjust the wage and salary expenses in the Profit and Loss Account, reflecting the outstanding amount.
2. Depreciation must be calculated and reduced from the value of Buildings and Machinery.
3. The prepaid insurance should be taken out of the insurance expenses in the Profit and Loss Account and shown under the current assets in the Balance Sheet.
Please provide the missing account balances for a comprehensive detailed solution.
