Matt Spode is a china wholesaler. A trial balance extracted from his books on 31 December 20X0 revealed the following balances:

The following information was available at 31 December 20X0:

(a) Stock at 31 December was £22,400.

(b) There were wages and salaries of £1,200 owing.

(c) There was a payment of £1,200 on 30 September to cover 12 months’ insurance.

(d) On reviewing debtors, it was discovered that a debt of £800 would not be recovered and that a further £1,200 was doubtful.

(e) Depreciation is 25 per cent reducing-balance on motors and 10 per cent straight-line on fixtures and fittings.

(f) Loan interest at 10 per cent has not been allowed for.

Required:

Prepare a profit and loss account and balance sheet for Matt Spode to cover the period in question.

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Capital account Purchases Sales 112,000 92,400 157,240 Premises at cost 64,000 Motor vehicles at cost 30,000 Accumulated depreciation of motors 8,200 Fixtures and fittings at cost 6,500 Accumulated depreciation - fixtures & fittings 1,100 Motor expenses 7,300 Rates 2,300 Balance at bank 4,200 Wages and salaries 42,000 Drawings 9,600 Insurance 2,000 Trade debtors 18,000 Provision for doubtful debts 560 Trade creditors 15,000 Sundry expenses 16,200 Long-term loan 20,000 Stock at 1 Jan 20X0 Cash in hand 19,250 350 314,100 314,100