On completion of writing up the books, the following matters are brought to
your attention:
(a) Stocks of food and drink at 28 February 19_8 are valued at £250.
(b) Mr Shah owes a waiter £20 in respect of overtime worked in week 4.
(c) The rates payment covers the period 1 February to 31 April.
(d) Electricity consumed in the month is estimated to be £100.
(e) Being a prudent man Mr Shah instructs you to create a provision for
doubtful debts of 4 per cent of debtors.
(f) It is decided to write off fixtures and fittings by equal instalments over 10
years.
You are required to:
1. adjust the books for the above
2. prepare the restaurant’s Trading and Profit and Loss Account for the first
month and a Balance Sheet as at 28 February 19_8