The following list of balances was extracted from the books of Clifton, a trader, at 31 Decembe r 1984:

T he following matters are to be taken into account:
(i) Stock at 31.12.84, £8,500.
(ii) Wages outstanding at 31.12.84, £415.
(iii) Rates paid in advance at 31.12.84, £50.

(iv) Depreciation on furniture and fittings is to be provided for the year ended 31.12.84 at 10% of the balance at 1 January 1984.

Required:

Prepare an income statement for the year ended 31 December 1984 and a balance sheet as at that date.

Transcribed Image Text:

Capital 15,000 Land and buildings 7,000 Furniture and fittings 1,400 Stock (1.1.84) 6,100 Purchases 58,700 Sales 69,300 Debtors and creditors 5,850 5,545 Rent received 415 Discounts allowed 1,320 Discounts received 925 Bad debts 325 Wages and salaries 7,045 Drawings 1,600 General expenses 865 Bank 680 Rates and insurances 300 91,185 91,185