Ahmed owns a small business selling coffee makers to other businesses. On 31st December 2020 he extracted the following trial balance. Account Name
Debit $
Credit $

Sales Revenue

676,611

Sales returns
5,148

Opening inventory
92,056

Purchases
371,111

Purchase returns

3,321

Freehold property
228,447

Equipment at cost
34,425

Accumulated depreciation on equipment

6,300

Motor vehicle
47,250

Accumulated depreciation on motor vehicle

10,575

Salaries and Wages
14,580

Insurance
3,150

Motor expenses
4,950

Advertising expenses
3,663

Loan interest
5,850

Receivables
70,920

Allowance for receivables

3,807

Payables

64,584

Cash at bank
122,148

Bank loan

55,800

Capital

182,700

Total
1,003,698
1,003,698

The following information is relevant.
Closing inventory was valued at $95,796.
Equipment is depreciated by 10% on Straight line basis.
Motor vehicles are depreciated by 20% on reducing balance basis.
Accrued wages at the end of 2020 amount to $3,015.
On 1 November 2020 Johns paid $1,350 for insurance which is valid until 31 October 2021.
Irrecoverable receivables of $2,250 need to be written off.
Ahmed decides to increase the allowance for receivable for $4,707.
Ahmed has taken goods worth $4,050 for his own use.
Required:
Prepare Ahmed’s income statement for the year ending 31st December 2020.
Prepare Ahmed’s balance sheet as at December 2020.
(10+10 = 20 Marks)