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The following balances were extracted from the books of Jolo Enterprise as at 31^st December, 2005.

Particulars Debit Credit

GH GH

Capital 500

Purchases / Sales 550 1,550

Returns 20 50

Discounts 70 130

Telephone Charges 30

Stationery 20

Investment income 50

Stock 1^st Jan. 05 40

Motor vehicle 2,000

Building 3,000

Equipment 1,500

Provision for depreciation:

-Motor vehicle 180

-Building 240

-Equipment 500

Debtors / Creditors 4,000 6,200

Provision for doubtful debts 150

Bad debt 30

Insurance premium 70

Bills Receivable 100

Bills Payable 150

Wages and salaries 300

Commission 150 340

Drawings 300

Rent 280

Rent Income 500

Transportation 200

Custom Duties 20

Bank 400

Cash 500

Investment 2,500

Goodwill 5,000

Bank Loan 14,640

Carriage inwards 350

Carriage outwards 550

Trade Mark 4,000

25,580 25,580

The following additional information is given below:

1. The original value of stock at 31/12/05 was GH450 however, the market value of the stock as at that date was GH390.
2. Salaries and wages accrued was GH50.
3. The fixed assets are depreciated at:

• Motor vehicle 20% on cost.
• Building 10% on cost.
• Equipment 15% on reducing balance method.

4. The provision for bad debts was increase to GH200.
5. Insurance prepaid was GH45.

You are required to prepare:

a) The Trading and Profit and loss Account for the year ended 31/12/05.

b) Balance as at that date

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