5.14 The following is Ash’s trial balance as at 31 March 2005:

Additional information:
1 Stock at 31 March 2005: £15 000.
2 At 31 March 2005 there was a specific bad debt of £6000. This was to be written off.
3 Furniture is to be depreciated at a rate of 10 per cent per annum on cost.
4 At 31 March 2005 Ash owes the electricity board £600, and £100 had been paid in advance for insurance.
5 The provision for bad and doubtful debts is to be set at 10 per cent of trade debtors as at the end of the year.
Required:
Prepare Ash’s trading and profit and loss account for the year to 31 March 2005 and a balance sheet as at that date.

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Dr Cr Bank Capital 4000 20 500 Depreciation (at 1 April 2004): furniture 3600 Drawings 10000 Electricity 2000 Furniture, at cost 9000 Insurance 1500 Miscellaneous expenses 65 800 Provision for bad and doubtful debts (at 1 April 2004) 1200 Purchases 80000 Sales 150000 Stock (at 1 April 2004) 10000 Trade creditors Trade debtors 20000 21000 199 300 199 300