The following is a list of ledger balances in the books of Jim, as at 31 March 1984:

Required:

(a) Prepare a trial balance.

(b) Prepare a trading, profit and loss account for the year ended 31 March 1984 and a balance sheet (in vertical form) as on 31 March 1984, incorporating the following details:
(i) Closing stock £35,000.
(ii) An amount of £1,000, included in trade debtors as above, is to be regarded as a bad debt and written off in full. The bad debt provision is adjusted at 31 March each year to be 1 per cent of trade debtors.
(iii) During the year an item of plant—original cost £1,000, depreciation to date £400—was sold for £900. The bookkeeper did not know how to treat this item, and so had made no adjustments for it. The sales proceeds were credited to a 'sale of plant' account.(iv) Included in general expenses are the following: (1) £100 paid to an insurance company for property and equipment insurance, being the premium for the year to 30 June 1984; (2) £25, being the road fund licence on Jim's car for the year to 30 September 1984.
The telephone bill (also included in general expenses) paid in March read as follows: rental charge 1 March to 31 May £12;
calls charge 1 December to 28 February £60. N o other telephone bill has since been received.
(vi) Jim has taken for his own use during the year goods costing £100.
(vii) Plant and machinery is to be depreciated at 10 per cent p.a.
on the reducing balance. No plant has been bought during the year.

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Capital 50,000 Property at cost 50,000 Plant and machinery -cost 10,000 -depreciation b/f 6,000 Sales 200,000 Purchases 100,000 Stock 30,000 Trade debtors 40,000 Trade creditors 15,000 Wages 15,000 Heat, light and power 2,000 General expenses 17,000 Discount received 1,000 Discount allowed 900 Carriage inwards 800 Carriage outwards 700 Returns inwards 600 Returns outwards 500 Bad debt provision b/f 400 Sale of plant 900 Cash and bank balance 2,800 Drawings 4,000