Self-test Balance sheet of Miro at 31 July 2009 Land and buildings (at cost) 45,000 Fixtures and fittings (cost £20,000) 14,800 59,800 Stock 6,300 Debtors 8,120 Telephone prepaid 416 Bank 6,000 20,836 Creditors 6,140 Electricity accrued 496 6,636 14,200 74,000 Capital 74,000 The only record kept by Miro is a cash book in which all transactions that pass through the bank account are recorded.
A summary of the cash book for the year ended 31 July 2010 is as follows:
From the supporting documents it has been ascertained that the following amounts were paid from the cash takings before they were banked:
Drawings 6,000 Purchases 1,803 Car repairs 1,002 Printing 210 Total 9,015 Additional information:
(i) Stock at 31 July 2010 was valued at £4,130.
(ii) At 31 July 2010 there are telephone charges prepaid of £240 and electricity accrued of £490.
(iii) The trade debtors and trade creditors outstanding at the end of the year are £6,840 and £5,930 respectively.
(iv) Miro has taken goods that cost £710 from the business for his own use.
(v) Fixtures and fittings are to be depreciated at 20 per cent per annum using the reducing balance method.
You are required to prepare a trading and profit and loss account for the year ended 31 July 2010 and a balance sheet at that date.