The trial balance for a small business at 31 August 2011 is as follows:

Required: 1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August 2011. 2 An income statement for the year ending 31 August 2011, together with a statement of financial position as at that date.

Transcribed Image Text:

Inventory 1 September 2010 Purchases and sales Rent Business rates Sundry expenses Motor vehicle at cost Accounts receivable and accounts payable Bank Provision for depreciation on motor vehicle Capital at 1 September 2010 Drawings At 31 August 2011 there was: Inventory valued at cost prices 9,100 Accrued rent of 400 Prepaid business rates of 300 The motor vehicle is to be depreciated at 20 per cent of cost 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