5.10 Dale has been in business for some years. The following is his trial balance at 31 October 2006:

Additional information (not taken into account when compiling the above trial balance):
1 Stock at 31 October 2006: £26 000.
2 Amount owing for electricity at 31 October 2006: £1500.
3 At 31 October 2006, £2000 had been paid in advance for rates.
4 Depreciation is to be charged on the office equipment for the year to 31 October 2006 at a rate of 20 per cent on cost and on the vehicles at a rate of 25 per cent on cost.
Required:
Prepare Dale’s trading and profit and loss account for the year to 31 October 2006 and a balance sheet as at that date.

Transcribed Image Text:

Dr Cr Bank Capital 700 85000 Depreciation (at 1 November 2005): Office equipment 14000 Vehicles 4000 Drawings 12300 Heating and lighting 3000 Office expenses 27000 Office equipment, at cost 35000 Rates 12000 Purchases 240000 Sales 350000 Stock (at 1 November 2005) 20000 Trade creditors 21000 Trade debtors 61000 Vehicles at cost Wages and salaries 16000 47000 474000 474000