The Balance Sheet of Tinsley Traders at 31 July 1983 was as follows:

Fixed assets:

Land and buildings Plant and equipment Less accumulated depreciation Current assets:

Stock Trade debtors Prepaid rates Cash at bank OwnersTnterest:

Capital introduced Retained profits Long-term loan (10%)

Current liabilities:

Trade creditors Interest payable Accrued heat and light

£ £

63000 24000 6000 18000 ---

81000 5800 7240 1500 1130 15670 - - - -

£96670 40000 20660 - --

60660 24000 11450 200 360 12010

£96670 During the year ended 31 July 1984 the following transactions were recorded:

(i) Purchase of goods for resale

(ii) Payments made to suppliers

£263500;

£257480;

(iii) Cash received from customers £471 900;
(iv) Payment of operating expenses £ 164 360;
(v) Purchase of additional equipment for £22000 on I March, 1984 with payment to be made by an immediate deposit of £4000 followed by twelve equal monthly instalments beginning on I April , 1984;
(vi) Payment of quarterly interest payments on the long-term loan , of £600 on 30 September, 31 December, 31 March and 30 June;
(vii) Payments made out of the business bank account on behalf of the owner, of £17 430;
Inspection of the records at the end of the year revealed the following additional information:
(viii) Trade debtors at 31 July 1984 amounted to £9230.
(ix) Included in the operating expenses was an amount of £3600 relating to rates on the business premises for the year to 31 March 1985.
(x) An electricity bill for £840 was received in September 1984 relating to three month to 15 September 1984.
(xi) Depreciation of £7100 is to be charged on plant and equipment.
(xii) Closing stock of goods at 31 July 1984 amounted to £8200.
Required

(a) Record the above transactions and information in the relevant T accounts.

(b) Prepare a Trading and Profit and Loss Account for the year ended 31 July 1984 and a Balance Sheet on that date.