The following ledger balances are extracted from the books of White TradingCompany as at 31December 2003: ＄Bad debts 750Bank overdraft 1,650Capital100,000Carriage inwards 3,500Carriage outwards1,400Creditors 18,500Debenture interest 900Debtors 12,500Discounts allowed1,300Discounts received 1,500Drawings24,900Equipment (at cost)150,000 Insurance1,000 Lighting 5,000 Motor Van 40,000 Provision for bad debts 1,100 Provision for depreciation —Equipment 90,000 —Motor Van 18,000 Purchases1,000,000 Rent & rates 110,000 Salaries and wages 210,000 Sales1,400,000 Stock 1 January 200390,000 Returns inwards 13,000 Returns outwards13,500 9% 1998-2008 10-yearDebenture 20,000Additional information relevant to the year ended 31December 2003 is as follows: 1.Closing stock at 31December 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 LossAccount for the year ended 31December 2003.