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

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

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.

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Frank Woods Business Accounting

ISBN: 9780273655527

9th Edition

Authors: Frank Wood, Alan Sangster

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