The following trial balance was extracted from the books of R Giggs at the close of business on 28 February 20X7.

Notes:

(a) Stock 28 February 20X7 £2,400.

(b) Wages and salaries accrued at 28 February 20X7 £340.

(c) Rent prepaid at 28 February 20X7 £230.

(d) Van running costs owing at 28 February 20X7 £72.

(e) Increase the provision for doubtful debts by £91.

(f) Provide for depreciation as follows: Office furniture £380; Delivery van £1,250.

Required:

Draw up the trading and profit and loss account for the year ending 28 February 20X7 together with a balance sheet as on 28 February 20X7.

Transcribed Image Text:

Purchases and sales Cash at bank Cash in hand Capital account 1 March 20X6 Drawings Office furniture Rent Wages and salaries Discounts Debtors and creditors Stock 1 March 20X6 Provision for doubtful debts 1 March 20X6 Delivery van Van running costs Bad debts written off Dr £ 92,800 4,100 324 17,100 2,900 3,400 31,400 820 12,316 4,120 3,750 615 730 174,375 Cr £ 157,165 11,400 160 5,245 405 174,375