The year-end Trial Balance of a business owned by Guy Maurice appears as shown. Guy assures you that:

(i) Goods purchased have been all sold;

(ii) No expenses remain unpaid; and

(iii) He does not wish to depreciate furniture.

Required: 

Prepare the Statement of income for the year ended 30 June 2010 and the Statement of financial position on the last day of the accounting period, with an explanation of how you have reported the returns accounts and drawings in the financial statements.

Transcribed Image Text:

Trial Balance as at 30 June 2010 Cash a/c Capital a/c Drawings a/c Furniture a/c Rent a/c Advertising a/c Purchases a/c Purchases returns a/c Sales a/c Sales returns a/c City Stores a/c Global Ltd a/c Hugh Soft a/c Mary Bold a/c Shelly Gray a/c Debit £ 6,510 - 200 4,000 300 400 7,485 - - 470 - Credit £ - 10,000 - - 350 10,270 - 3,525 3,610 3,540 2,460 2,390 27,755 27,755 - - -