Sole traders — practice question

Fatima trades as a sole trader and prepares financial statements up to 31 March each year. On 31 March 2022, the balances in Fatima’s ledger accounts were as follows. Revenue $79400 Sales returns $3970 Purchases $36500 Rent and rates $9000 Wages $10100 General expenses $1287 Insurance $1800 Discount received $1095 Inventory at 1 April 2021 $3000 Fixtures and equipment at cost $80000 Fixtures and equipment - provision for depreciation $39040 Trade receivables $6400 Trade payables $4995 Provision for doubtful debts $156 Cash drawings $8580 Capital at 1 April 2021 $59000 The extra information is given below. 1 Inventory at 31 March 2022 amounted to $3120. 2 In the year ended 31 March 2022, Fatima withdrew goods for personal use from the business. These goods had cost $1300. 3 Depreciation on fixtures and equipment is to be charged at 20% per annum using the reducing balance method. 4 Accrued wages at 31 March 2022 were $800. 5 Rent includes a payment of $1500 for the 3 months from 1 March 2022 to 31 May 2022. 6 An irrecoverable trade receivable of $200 is to be written off. 7 The provision for doubtful debts is to be set at 3% of trade receivables.