The trial balance extracted from the books of Chang Ltd at 31 December 20X8 was as follows:

You are given the following additional information:

(i) The authorised and issued share capital is divided into 100,000 shares of £1 each.
(ii) Stock in trade at 31 December 20X8, £29,142.
(iii) Wages and salaries due at 31 December 20X8 amounted to £581.
(iv) Rent paid in advance at 31 December 20X8 amounted to £300.
(v) A dividend of £10,000 is proposed for 20X8.
(vi) The provision for doubtful debts is to be increased to £938.

(vii) A depreciation charge is to be made on machinery at the rate of 10 per cent per annum on cost.

Required:
A trading and profit and loss account for 20X8 and a balance sheet as at 31 December 20X8.

Transcribed Image Text:

Share capital 100,000 Profit and loss account 31 December 20X7 34,280 Freehold premises at cost 65,000 Machinery at cost 55,000 Provision for depreciation on machinery account as at 31 December 20X7 15,800 Purchases 201,698 Sales 316,810 General expenses 32,168 Wages and salaries 54,207 Rent 4,300 Lighting expenses 1,549 Bad debts 748 Provision for doubtful debts at 31 December 20X7 861 Debtors 21,784 Creditors 17,493 Stock in trade 31 December 20X7 25,689 Bank balance 23,101 485,244 485,244