Standish has been trading for some years. The following trial balance has been extracted from his books of account as at 31 May 2021:

Inventory at 31 May 2021: £12 000.

Required:
Prepare Standish’s statement of profit or loss and statement of retained earnings for the year to 31 May 2021 and a statement of financial position as at that date.

Transcribed Image Text:

Capital Cash Payables Receivables Drawings Furniture and fittings Heating and lighting Miscellaneous expenses Purchases Sales Inventory (at 1 June 2020) Wages and salaries Dr 42 £ 1 200 6.000 5.500 8 000 1 500 6 700 52 000 7 000 17 800 105 700 Cr £ 22 400 4 300 79 000 105 700