The trial balance for a small business at 31 August 20X8 is as follows:

At 31 August 20X8 there was:

• Stock valued at cost prices £9,100
• Accrued rent of £400
• Prepaid business rates of £300
• The motor vehicle is to be depreciated at 20% of cost

Required:

1. The adjustments to the ledger accounts for rent and business rates for the year to 31 August 20X8.

2. A trading profit and loss account for the year ending 31 August 20X8, together with a balance sheet as at that date.

Transcribed Image Text:

Stock 1 September 20X7 Purchases and Sales Rent Business rates Sundry expenses Motor vehicle at cost Debtors and creditors Bank Provision for depreciation on motor vehicle Capital at 1 September 20X7 Drawings £ 8,200 26,000 4,400 1,600 340 9,000 1,160 1,500 11,700 63,900 £ 40,900 2,100 1,200 19,700 63,900