ASSIGNMENT TWO, QUESTION SIX. Mr Christian has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 2017, the end of his most recent financial year. GHC Capital 83,887 Sales 259,870 Trade creditors 19,840 Returns out 13,407 Provision for doubtful debts 512 Discounts allowed 2,306 Discounts received 1,750 Purchases 135,680 Returns inwards 5,624 Carriage outwards 4,562 Drawings 18,440 Carriage inwards 11,830 Rent, rates and insurance 25,973 Heating and lighting 11,010 Postage, stationery and telephone 2,410 Advertising 5,980 Salaries and wages 38,521 Bad debts 2,008 Cash in hand 534 Cash at bank 4,440 Stock as at 1 May 2016 15,654 Trade debtors 24,500 Fixtures and fittings at cost 120,740 Provision for depreciation on fixtures and fittings as at 30 April 2017 63,020 Depreciation 12,074 The following additional information as at 30 April 2017 is available: (a) Stock at the close of business was valued at GHC17,750. (b) Insurances have been prepaid by GHC1,120. (c) Heating and lighting is accrued by GHC1,360. (d) Rates have been prepaid by GHC5,435. (e) The provision for doubtful debts is to be adjusted so that it is 3% of trade debtors. Required: Prepare Mr Christians trading and profit and loss account for the year ended 30 April 2017 and a balance sheet as at that date