Grahame Hill is a retailer who does not keep complete records of accounts. He has provided you with the following information

A summary of his bank account for the year ended 31 December 2028 was as follows:

Additional information:
All the cash sales were banked after Hill took personal drawings of £120 per week from the sales receipts.
Required:
i. An income statement for the year ended 31 December 2028.
ii. A balance sheet as at 31 December 2028.

Transcribed Image Text:

Premises 31 Dec 2027 31 Dec 2028 100,000 100,000 Equipment Motor cars 24,000 21,700 12,500 9,700 Trade payables 8,756 9,305 Trade receivables 11,454 10,980 Expenses owing 345 653 Inventory 6,590 8,150 Insurance prepaid 34 87