Dale has been in business for some years. The following is his trial balance at 31 October 2020:

Additional information (not taken into account when compiling the above trial balance):
1. Inventory at 31 October 2020: £26 000.
2. Amount owing for electricity at 31 October 2020: £1500.

3. At 31 October 2020, £2000 had been paid in advance for rates.
4. Depreciation is to be charged on the office equipment for the year to 31 October 2020 at a rate of 20 percent on cost and on the vehicles at a rate of 25 percent on cost.

Required:
Prepare Dale’s statement of profit or loss and statement of retained earnings for the year to 31 October 2020 and a statement of financial position as at that date.

Transcribed Image Text:

Cash at bank Capital Depreciation (at 1 November 2019): Office equipment Vehicles Drawings Heating and lighting Office expenses Office equipment, at cost Rates Purchases Sales Inventory (at 1 November 2019) Trade payables Trade receivables Vehicles at cost Wages and salaries Dr £ 700 12 300 3.000 27 000 35 000 12 000 240 000 20 000 61 000 16 000 47 000 474 000 Cr £ 85 000 14 000 4 000 350 000 21 000 474 000