The following trial balance was extracted from the books of A. business on 28 February 19X7. Purchases

Question:

The following trial balance was extracted from the books of A.

business on 28 February 19X7.

Purchases and sales Cash at bank Cash in hand Capital account 1 March 19X6 Drawings Office furniture Rent Wages and salaries Discounts Debtors and creditors Stock 1 March 19X6 Provision for bad and doubtful debts 1 March 19X6 Delivery van Van running costs Bad debts written off Notes:

(a) Stock 28 February 19X7 £3,510.

(b) Wages and salaries accrued at 28 February 19X7 £90.

(c) Rent prepaid at 28 February 19X7 £140.

(d) Van running costs owing at 28 February 19X7 £60.

(e) Increase the provision for Bad and Doubtful Debts by £60.

(/) Provide for depreciation as follows: Office furniture £180. Delivery van £480.

Required:

Draw up the trading and profit and loss accounts for the year ending 28 February 19X7 together with a balance sheet as on 28 February 19X7, using vertical formats throughout.

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