5.7 Witton commenced business on 1 July 2006. The following trial balance was extracted from his books of account as at 30 June 2007:

Additional information:
1 Stock at 30 June 2007: £2000.
2 The motor car is to be depreciated at a rate of 20 per cent per annum on cost; it was purchased on 1 July 2006.
Required:
Prepare Witton’s trading and profit and loss account for the year to 30 June 2007 and a balance sheet as at that date.

Transcribed Image Text:

Dr Cr 3 Capital Cash Drawings 3000 500 4000 Creditors 1500 Debtors 3000 Motor car at cost 5000 Office expenses 8000 Purchases 14000 Sales 30000 34500 34 500