The following trial balance was extracted from the books of Tim Russell at 31 December 20X0.

The following additional information as at 31 December 20X0 is available:
1 £588 of the carriage represents carriage inwards on purchases.
2 Equipment is to be depreciated at 10 per cent per annum using the straight-line method.
3 Rates have been prepaid by £213.
4 Advertising is accrued by £177.
5 Salaries and wages includes £5,500 which was paid on a weekly basis to Tim.
6 Stock at the close of business was valued at £8,221.
Required:
Prepare a trading and profit and loss account for the year ended 31 December 20X0 and a balance sheet as at that date.

Transcribed Image Text:

Sales 105,560 Purchases 71,224 Discounts allowed and received 1,206 684 Carriage Drawings Rent, rates and insurance 2,588 431 5,973 Postage and stationery Advertising Salaries and wages Bad debts Debtors Creditors Cash in hand 1,213 1,852 13,076 1,234 13,170 11,640 312 Cash at bank 3,054 Stock as at 1 January 7,154 Equipment - at cost 48,700 accumulated depreciation 21,650 Capital 31,653 171,187 171,187