Annie Lim provides the following information:

Additional information at 30 June 20*8
■ Stock was valued at £9,284.
■ Annie has taken goods from the business £1,750 for her personal use.
■ Insurance prepaid £350.
■ Motor expenses owing £299.
■ Commission receivable owing to Annie £500.
■ Rent receivable paid in advance £600.
■ A provision for doubtful debts is to be maintained at 5% of debtors outstanding at the year-end.
■ Depreciation is to be provided for on fixed assets at the following rates:
– Premises 2% per annum using the straight line method
– Office equipment 10% per anum using the straight line method
– Vehicles 20% per annum using the reducing balance method.

Required

a) Prepare a trading and profit and loss account for the year ended 30 June 20*8.
b) Prepare a balance sheet at 30 June 20*8.

Transcribed Image Text:

Stock 1 July 20*7 Purchases Sales Returns inwards Returns outwards Carriage inwards Carriage outwards Rates Insurances Wages Discounts allowed Discounts received Commission received Trial balance at 30 June 20*8 Dr Rent received Motor expenses Bad debts Bad debts recovered Premises at cost Office equipment at cost Vehicles at cost Provision for depreciation Premises Office equipment Vehicles Trade debtors Trade creditors Bank overdraft Cash in hand Capital Drawings Provision for doubtful debts £. 7,481 99,246 187 1,287 462 3,618 2,700 81,342 624 8,134 1,400 250,000 68,000 32,000 18,300 714 16,500 591,995 Cr £ 214,683 211 1,438 2,500 4,250 120 150,000 27,200 11,520 6,422 7,968 164,857 826 591,995