A shop owned by Jeanne Salt informs you that:

(a) Assets and liabilities of the shop are as shown.

(b) Furniture acquired for £16,200 and written down to £5,400 was scrapped during the year.

(c) A vehicle acquired for £54,000 was sold during the year for £30,000 making a gain of £8,000.

(d) Sales in the year amounting to £846,200 yielded a gross profit ratio of 25%.

(e) Expenses incurred in the year include the following:

£68,200 administrative and selling expenses

£2,100 bad debts

£4,200 depreciation on furniture.

(f) No record has been maintained of amounts drawn by Jeanne from time to time.

Required: 

Prepare:

(a) The Statement of affairs as at 1 April 2010, and

(b) The financial statements for the year ended 31 March 2011.

Transcribed Image Text:

As at 31 March 2010 Furniture at cost Depreciation Motor vehicles Depreciation Inventory Trade receivables Cash and bank Trade payables Accrued expense 4 2011 4 36,400 54,200 (18,200) ? 124,000 132,400 (86,800) (68,400) 154,500 216,800 216,400 254,200 16,200 9,600 208,300 245,900 16,400 32,500