1. **State the problem:** Prepare a balance sheet (statement of financial position) for Jonn Brown as at 31 December 2013 using the trial balance and adjustments provided. 2. **List given data:** - Revenue: 400,000 (credit) - Purchases: 350,000 (debit) - Revenue return: 5,000 (debit) - Purchases return: 6,200 (credit) - Inventory at 1.1.2013: 100,000 (debit) - Allowance for doubtful debts: 800 (credit) - Adjustments: (a) Inventory at 28.2.2010: 2,400 (assumed closing inventory for 2013) (b) Wages and salaries accrued: 340 (liability) (c) Rent prepaid: 230 (asset) (d) Van running costs owing: 72 (liability) (e) Increase allowance for doubtful debts by 91 (f) Provision for depreciation: Office equipment 380, Delivery van 1,250 3. **Calculate adjusted allowance for doubtful debts:** $$800 + 91 = 891$$ 4. **Calculate closing inventory:** Given as 2,400 5. **Calculate net purchases:** $$\text{Net purchases} = 350,000 - 6,200 = 343,800$$ 6. **Calculate gross profit:** Gross profit is not directly asked but useful for income statement; here focus is balance sheet. 7. **Prepare assets section:** - Inventory (closing): 2,400 - Prepaid rent: 230 - Delivery van (cost not given, but depreciation 1,250) - Office equipment (cost not given, depreciation 380) - Allowance for doubtful debts reduces receivables (not given explicitly) 8. **Prepare liabilities section:** - Accrued wages and salaries: 340 - Van running costs owing: 72 9. **Prepare equity section:** - Capital and retained earnings not given explicitly; assume balancing figure. 10. **Summary:** Since full asset and liability values are not provided, the balance sheet preparation is limited to adjustments and known balances. **Final answer:** Balance sheet as at 31 December 2013 **Assets:** - Inventory: 2,400 - Prepaid rent: 230 - Less allowance for doubtful debts: 891 (contra asset) - Office equipment and delivery van net book value after depreciation (costs not given, so cannot compute net book value) **Liabilities:** - Accrued wages and salaries: 340 - Van running costs owing: 72 **Equity:** - Balancing figure to balance assets and liabilities Without full cost data, a complete balance sheet cannot be prepared but adjustments are incorporated as above.