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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