Daniel has extracted the following trial balance from the books of account at 31 March 2015.

Additional information:

• Provide for depreciation for the year on motor vehicles at 25 percent per annum using the reducing-balance method.

• Property rental is paid at $2400 per month. Two months have been paid in advance.

• Daniel has used $520 worth of light and heat that has not yet been billed to him.

• Daniel wishes to create a provision for doubtful debts amounting to 2 percent of trade receivables at 31 March 2015.

• Inventory at 31 March 2015 was valued at $12,440.

Required

Prepare an income statement for The year ended 31 March 2015 and a statement of financial position at that date taking account of the additional information.

Transcribed Image Text:

Dr (S) Cr (S) Bank account 2 274 Bank loan account 8 400 (repayable 2019) Capital account 88 022 Carriage inwar ds 1 280 Carriage outwards 2 345 Discount allowed 1 076 Discount received 1452 Drawings 31 180 Inventory at 1 April 2014 10 250 Light and heat 3 109 Motor expenses 6 846 Motor vehicles - cost at 1 April 2014 54 600 - provision for depreciation at 1 April 2014 23 888 Office expenses 8 309 Professional fees 2 400 Property rental 33 Purchases 109 690 Returns inwards 1 251 Returns outwards 1036 Revenue 212 520 Stationery and advertising 2 884 Trade payables 9 354 Trade receivables 35 870 Wages 42 256 Totals 346 946 346 946