5.6* Standish has been trading for some years. The following trial balance has been extracted from his books of account as at 31 May 2006:

Note: Stock at 31 May 2006: £12 000.
Required:
Prepare Standish’s trading and profit and loss account for the year to 31 May 2006 and a balance sheet as at that date.

Transcribed Image Text:

Dr Cr Capital Cash 22 400 1200 Creditors 4300 Debtors 6000 Drawings 5500 Furniture and fittings 8000 Heating and lighting 1500 Miscellaneous expenses 6700 Purchases 52000 Sales 79000 Stock (at 1 June 2005) 7000 Wages and salaries 17800 105700 105 700