The Trial Balance ofT. Randolph as on 31 December 1983 was as follows:

Capital on I January 1983 Capital introduced on I July 1983 Drawings Plant and machinery

£

3780 28420

£

40000 10000 Motor vehicles Furniture and fitt ings Accumulated depreciati on :
Plant and machiner y Motor vehicles Furniture and fittin gs Debtor s and creditors Bank overdraft Bank interest Stock on I January 1983 Purchases and sales Discounts Office salaries Rent, rates and insurance Wages Advertising Bad debts written off Cash in hand £
6500 1600 13200 250 11470 88 490 1070 17200 6420 39410 5830 650 370 £224660 £
9420 2500 700 16400 3490 141200 950 £224660 Additional information:
(i) Stock on 31 December 1983 was valued at £ 12690.
(ii) Randolph drew a salary of £200 per month throughout the yea r, pa yments being debited to office salaries.
(iii) No record has been mad e of a disposal of a motor vehicle that had originally cos t £2500 and who se book value at I January was £1200. It was sold on credit for £ 1000 on 31 December 1983. A full year's depreciat ion should be provided at 20 per cent of book value on all motor vehicles held at the year end.
(iv) Create a provision for bad debts of I! per cent of outsta nding debtors.
(v) Pro vide 10 per cent depreciat ion on the book value of plant and machinery and 15 per cent on the cost of furniture and fittings.
(vi) Rent due but unpaid at 31 December 1983 is £810. Insurance premiums paid in March 1983 for the yea r to 30 April 1984 amo unted to £690.
Prep are a Trading and Profit and Loss Account for T. Randolph for the yea r ended 31 December 1983 and a Balanc e Sheet as that date.