Sales $450,000.

00
Less: Sales Return -$2,000.00 $448,000.00

Cost of goods sold

Opening Inventory $30,000.00
Add: Purchases $170,000.00
Add: Carriage inward $850.00
Less: Purchase return -$500.00
Less: Closing Inventory -$35,000.00 $165,350.00

Gross Profit $282,650.00

Expenses
Rent Expense $12,000.00
Insurance $2,400.00
General expense $11,600.00
Electricity $9,000.00
Wages and salaries $30,000.00
Repairs and maintenance $3,500.00
Increased in provision of doubtful debts (50,000 *4%) - 1,500 $500.00
Bank charges $500.00
Interest on loan 8,000 * 5% $400.00
Motor vehicle expenses $1,000.00 $70,900.00

Other Income
Commission received $10,000.00
Discount received $2,500.00
Rent receiced $5,000.00 $17,500.00

Profit for the year $229,250.00

NCA A $330,400.00
Equipment $24,000.00 E+L $330,400.00
Motor vehicle $20,000.00 $0.00
Machienery $180,000.00
$224,000.00

Current Assets
Bank $17,000.00
Inventory $35,000.00
Trade receivable $50,000.00
Provision for doubtful debts 1,500 + (50,000 * 4%) $2,000.00
Rent receivable $2,000.00
Prepaid insurance 3,000 - 2,400 -$600.00
Prepaid expense $1,000.00
Total current assets $106,400.00
Total assets $330,400.00

Liabilities
Trade payables $12,250.00
Loan from AB Finance $8,000.00
Interest payable 8,000 * 5% $400.00
Accrued wages and salaries $4,500.00
Accrued general expense $400.00
Total liabilities $25,550.00

Equity
Capital $78,350.00
Drawings -$2,750.00
Profit for the year $229,250.00
Total Equity $304,850.00

Total Equity and Liabilities $330,400.00