I have an accounting exam on tuesday and this is a sample question from last years paper. I was wondering if someone, anyone could help me with a solution. Im really stuck. Any help is greatly appreciated and sorry if i posted this in the wrong place. Thanks a mil.

A trial balance was extracted from the ledgers of Ms M Suggins, a distributor of scientific lab equipment on December 31st 2005.

Debit€ Credit€
Capital 144,000
Balance on Vat AC 8,200
BALANCE ON PAYE/PRSI AC 5,250
PURCHASES & SALES 408,120 617,530
SALES & PURCHASE RETURNS 4,600 3,600
DEBTORS & CREDITORS 127,000 58,400
PROVISION FOR BAD DEBTS 1,700
MACHINERY (COST 150,000) 110,000
MOTOR VANS (COST 140,000) 98,000
CASH 1,800
BANK 36,500
STOCK @ 1ST JAN 2005 46,700
LONG TERM LOAN 96,000
CARRIAGE IN 2,650
RATES & INSURANCE 28,250
CARRIAGE OUT 8,500
WAGES & SALARIES 70,500
ADVERTISING & PROMOTION 5,750
COMMISION PAID 3,750
SUNDRY EXPENSES 2,250
DRAWINGS 27,000
DISCOUNTS 5,500
RENT 9,500 5,000

967,980 967,980


You arealso provided with the following information that is not recorded in the ledgers:

1. The owner withdrew €3,500 from Cash for personal use.
2. The Provision for Bad Debts should be adjusted to 3% of Debtors.
3. Depreciation should be provided as follows: Machinery 30% Straight Line Motor Vans 30% Reducing Balance
4. Insurance prepaid at the year-end was 2,540.
5. Loan Interest of 5% to be accrued at the 31st December 2005.
6. Closing stock/inventory at 31st of December was 59,800.

Required:

Prepare an income statement (Trading, Profit & Loss Account) for the year ended 31st December 2005, and a balance sheet at the same date.
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