Faisal Ahamed carries on a business selling flat panel computer monitors. He buys each monitor at £180 and sells each at £250. His transactions during the first week of business, ending 12 November 2010, have been accounted for and the accuracy of accounting verified by preparing a Trial Balance set out on the right. He has paid his expenses in full and does not wish to depreciate any of his non-current assets.

Required: 

Prepare, for Faisal’s business:

(a) The Statement of income for the week ending 12 November 2010, and

(b) The Statement of financial position as at that date.

Transcribed Image Text:

Trial Balance as at 12 November 2010 Debit Credit Cash a/c Capital a/c Rent a/c Office equipment a/c Motor vehicles a/c Motor vehicle maint a/c Purchases a/c Advertising a/c Wages a/c Sales a/c Stationery a/c £ 9,480 - 1,000 3,000 2,500 185 5,040 200 550 45 22,000 £ 15,000 - 7,000 22,000