The trial balance for Jock at 31 December 20X3 is as follows:

Additional information
1 Closing inventory value is £500.
2 The rates in the trial balance cover the 15 months to 31 March 20X4.
3 The motor car is depreciated using 20 per cent straight-line method.
4 A credit customer with a balance on his account of £1,000 is bankrupt.
5 Remove the provision for discounts and provide for a 10 per cent bad debt provision.
Required
a. Prepare the statement of profit and loss for Jock for the year ended 31 December 20X3.
b. Prepare the statement of financial position at the same date.
(An adjusted trial balance is not required. Show all the adjustments to the ledger accounts.)

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Debit Credit Sales revenue Trade receivables Provision for bad debts Purchases Trade payables Provision for discounts allowoble 10,000 5,000 250 2,000 1,000 200 300 100 10,000 Rates Motor car Provision for depreciation 2,000 5,000 9,250 22,600 22,600 Copital account