问答题 The following ledger balances are extracted from the books of White Trading Company as at 31 December 2003: ＄ Bad debts 750 Bank overdraft 1,650 Capital 100,000 Carriage inwards 3,500 Carriage outwards 1,400 Creditors 18,500 Debenture interest 900 Debtors 12,500 Discounts allowed 1,300 Discounts received 1,500 Drawings 24,900 Equipment (at cost) 150,000 Insurance 1,000 Lighting 5,000 Motor Van 40,000 Provision for bad debts 1,100 Provision for depreciation —Equipment 90,000 —Motor Van 18,000 Purchases 1,000,000 Rent & rates 110,000 Salaries and wages 210,000 Sales 1,400,000 Stock 1 January 2003 90,000 Returns inwards 13,000 Returns outwards 13,500 9% 1998-2008 10-year Debenture 20,000 Additional information relevant to the year ended 31 December 2003 is as follows: 1. Closing stock at 31 December 2003 ＄115,000 2. Accrued wages ＄20,000 3. Prepaid insurance ＄200 4. Outstanding telephone bill ＄200 5. Outstanding rent ＄10,000 6. Removal expenses of ＄950 are still outstanding because of dispute and they have not yet been entered into the accounting records. 7. The depreciation policy is: (a)Equipment reducing balance method at 5% p.a (b)Motor Van: 25% p.a on cost 8. It is a policy to make a provision for bad debts at 4% of outstanding debtors on the balance sheet date. Required: Prepare the Trading and Profit and Loss Account for the year ended 31 December 2003.