G. Hope started in business on 1 July 20X0, with £40,000 capital in cash. During the first year he kept very few records of his transactions.

The assets and liabilities of the business at 30 June 20X1 were:

During the year, Hope withdrew £9,000 cash for his personal use but he also paid £6,000 received from the sale of his private car into the business bank account.

Required:

From the above information, prepare a balance sheet showing the financial position of the business at 30 June 20X1 and indicating the net profit for the year.

Transcribed Image Text:

Freehold premises Mortgage on the premises Stock Debtors Cash and bank balances Creditors £ 76,000 50,000 24,000 2,800 5,400 7,600