"Bonta" is a sole trader. Following trial balance was extracted at 31/03/2016:

Here's the solution based on the provided trial balance and the assumption for stock figures. Assumption: Since no opening or closing stock figures are provided for "Bonta" in question 18, I will use the stock figures from question 19, which are: Opening Stock (as at 01/04/2015): 25,000 Closing Stock (as at 31/03/2016): 35,000 Note on Trial Balance: The provided trial balance does not balance. Total Debit Balances = 1,110,525 Total Credit Balances = 1,120,825 The credit side exceeds the debit side by 10,300. This discrepancy will result in the Statement of Financial Position not balancing. I will proceed with the given figures and highlight this issue. --- Step 1: Prepare the Income Statement (Trading and Profit & Loss Account). Bonta \\ Income Statement for the year ended 31 March 2016 Sales &&& \500,000 \\ Less: Cost of Goods Sold \\ Opening Stock & \25,000 \\ Add: Purchases & \325,000 \\ Add: Carriage Inwards & \1,800 \\ Goods Available for Sale & \351,800 \\ Less: Closing Stock & (\35,000) \\ Cost of Goods Sold &&& (\316,800) \\ Gross Profit &&& \183,200 \\ \\ Add: Other Income \\ Discounts received & \1,825 \\ Total Income &&& \185,025 \\ \\ Less: Operating Expenses \\ Salaries \& wages & \96,000 \\ Telephone \& postage & \9,250 \\ Electricity & \10,000 \\ Service \& maintenance & \21,000 \\ Motor vehicle running expenses & \18,000 \\ Interest on Mortgage loan & \9,375 \\ Bad debts & \3,600 \\ Discounts allowed & \2,500 \\ Total Operating Expenses &&& (\169,725) \\ Net Profit &&& \15,300 Step 2: Prepare the Statement of Financial Position. Bonta \\ Statement of Financial Position as at 31 March 2016 Assets \\ Non-current Assets \\ Business premises & \244,000 \\ Motor vehicle & \175,000 \\ Furniture \& equipment & \50,000 \\ Total Non-current Assets && \469,000 \\ \\ Current Assets \\ Debtors & \115,000 \\ Closing Stock & \35,000 \\ Total Current Assets && \150,000 \\ Total Assets &&& \619,000 \\ \\ Equity and Liabilities \\ Equity \\ Capital (Opening) & \400,000 \\ Add: Net Profit & \15,300 \\ Less: Drawings & (\20,000) \\ Closing Capital && \395,300 \\ \\ Non-current Liabilities \\ Mortgage loans && \125,000 \\ \\ Current Liabilities \\ Creditors && \94,000 \\ Total Equity and Liabilities &&& \614,300 Note: The Statement of Financial Position does not balance. Total Assets (619,000) do not equal Total Equity and Liabilities (614,300). This is due to the original trial balance being unbalanced by 10,300 (Credit side higher than Debit side). The difference in the Statement of Financial Position is 4,700 (619,000 - 614,300). This indicates an additional error in the trial balance or an unrecorded item. Send me the next one 📸