Set out on the right is the year-end Trial Balance extracted from the books of a shop owned by Bruce Willis.

You are informed as follows:

(a) All goods purchased have been sold by the year-end.

(b) All expenses for the period have been fully paid up.

(c) Furniture is not to be depreciated.

(d) Mathew, Sahib and Charles are customers of the shop while Natwell Bros and South and Son are suppliers.

(e) Loan from Richard is interest free and is not repayable until June 2014.

Required: 

Prepare the Statement of income for the year ended 30 June 2010 and the Statement of financial position as at that date.

Transcribed Image Text:

Trial Balance as at 30 June 2010 Furniture account Sales account Cash account Bank overdraft Stationery account Mathew account Sahib account Charles smith Purchases a/c Return outwards a/c Return inwards a/c Salaries a/c Rent account Loan from Richard Advertising account Netwell Bros a/c South and Son a/c Drawings account Capital account £ 4,000 - 320 - 180 7,200 5,800 4,500 23,500 - 1,450 1,200 600 - 950 - - 270 £ - - 26,500 850 450 2,000 3,400 9,200 - 10,000 52,400 52,400