David's trial balance at 31 March 2004 was as follows.

Further information 

1. Stock at 31 March 2004: $5000. 

2. Sales include goods sent on sale or return to a customer who has not yet indicated acceptance of the goods. The goods cost $3000 and the customer has been invoiced for $4000. 

3. Trade debtors includes debts totalling $1700 which are known to be bad. The Provision for Doubtful Debts is to be adjusted to include a specific provision of $3100 and a general provision of 5%. 

4. The following expenses are to be accrued: wages $400, electricity $360 and telephones $100.

5. Rent of $1600 has been prepaid. 

6. Depreciation is to be provided on the following bases: leasehold premises at 5% straight line; delivery vans at 25% reducing balance; office furniture at 10% straight line. 

Required 

(a) Prepare David's Trading and Profit and Loss Account for the year ended 31 March 2004. 

(b) Prepare the Balance Sheet at 31 March 2004.

Transcribed Image Text:

Account Sales Sales Returns Purchases Purchases Returns Wages Rent Electricity Telephone Postage and Stationery Carriage Inwards Carriage Outwards ME Discounts Allowed Discounts Received Leasehold Premises at cost Provision for Depreciation of Leasehold Premises $ 9 240 84 000 37.000 7.600 1 027 900 359 1 840 1 220 Faktu 6 015 70 000 $ 210 000 5 112 oriz 2 480 boilups 5 000 Delivery Vans at cost 18 00005 of WOH S Provision for Depreciation of Delivery vans duob bns b6d3600