Deborah Urer owns a small bar. Her trial balance as at 30 June 2012 is set out below.

You also have the following additional information.

1. Closing inventory is £6,250.

2. There is £200 owing for electricity and £300 of the insurance is prepaid.

3. Bad debts are £25 to be written off this year.

4. The provision for the impairment of receivables is to be increased to £25 on 30 June 2012.

5. There are the following depreciation charges: 2% on premises 10% on bar equipment and bar furniture 25% on motor car Required:

Prepare D. Urer’s income statement for the year ended 30 June 2012 and the statement of financial position as at 30 June 2012.

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Debit Credit Takings from sales of beer, wine and spirits 145,150 Purchases of beer, wine and spirits 83,250 Discounts receivable 450 Dividends receivable Drawings Advertising Motor expenses Telephone Electricity Insurance 150 26,400 3,600 1,750 2,800 1,250 1,900 General expenses Repairs Premises at cost Bar equipment at cost 2,250 350 20,340 Accumulated depreciation as at 1 July 2011 Accumulated depreciation as at 1 July 2011 6,300 8,200 2,500