The following trial balance was extracted from the books of R. Giggs at the close of business on 28 February 2010.

Notes:

(a) Inventory 28 February 2010 £2,400.

(b) Wages and salaries accrued at 28 February 2010 £340.

(c) Rent prepaid at 28 February 2010 £230.

(d) Van running costs owing at 28 February 2010 £72.

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

(f) Provide for depreciation as follows: Office furniture £380; Delivery van £1,250. Required: Draw up the income statement for the year ending 28 February 2010 together with a statement of financial position as at 28 February 2010.

Transcribed Image Text:

Purchases and sales Cash at bank Cash in hand Capital account 1 March 2009 Drawings Office furniture Rent Wages and salaries Discounts Accounts receivable and accounts payable Inventory 1 March 2009 Allowance for doubtful debts 1 March 2009 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