The following is the trial balance relates to the business of Sam a sole trader as at31 December 2021:

Sam
Trial Balance as at 31 December 2021
	DR	CR
	$	$
Land and Buildings	700,000
Motor Vehicles	400,000
Depreciation of motor vehicles		60,000
Sales		3,100,000
Sales return	15,000
Capital		600,000
Machinery	750,000
Carriage inwards	6,000
Depreciation of Machinery		70,000
Purchases	950,000
Purchases Returns		20,000
Inventory 1 January 2021	165,000
Administration expenses	150,000
Selling Expenses	260,000
Wages and salaries	78,000
Miscellaneous expenses	56,000
Loan from NCB		230,000
Receivables and Payables	246,000	160,000
Bank Account	120,000
Rent Received		26,000
Drawings	370,000
	4,266,000	4,266,000

Notes:

1. Inventory at 31 December 2021 : $245,000

2. Miscellaneous expenses prepaid : $23,000

3. Administration expenses accrued :$34,000

4. Depreciation motor vehicles at 20% on the reducing balance

5.Depreciation machinery at 10% on the straight-line method.

REQUIRED:

(A) Prepare the Trading Profit and Loss Account for the year ended 31December 2021

(B) Prepare the Balance Sheet as at 31 December 2021

Answer rating: 100% (QA)

A Trading Profit and Loss Account for the year ended 31 December 2021 Sales 3100000 Less Sales Retur... View the full answer