A The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader.

The following additional information as at 31 May 2019 is available:

(a) Rent is accrued by \(£ 210\).

(b) Rates have been prepaid by \(£ 880\).

(c) \(£ 2,211\) of carriage represents carriage inwards on purchases.

(d) Equipment is to be depreciated at \(15 \%\) per annum using the straight-line method.

(e) The allowance for doubtful debts is to be increased by \(£ 40\).
( \(f\) ) Inventory at the close of business has been valued at \(£ 13,551\).
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Prepare an income statement for the year ending 31 May 2019 and a balance sheet as at that date.

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Trial Balance as at 31 May 2019 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts Allowance for doubtful debts Trade receivables Trade payables Cash in hand Cash at bank Inventory as at 1 June 2018 Equipment at cost accumulated depreciation as at 1 June 2018 Capital Dr 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 12,120 177 1,002 11,927 58,000 Cr 138,078 130 6,471 19,000 53,091 216,770 216,770