Simon Eurat, who runs a taxi business, has the following trial balance.

You have the following additional information.

1. 10% of the trade receivables are considered irrecoverable.

2. £800 of the insurance is prepaid.

3. There is £250 owing for electricity and £300 owing for telephone.

4. Depreciation on taxis is to be 25% on cost and on buildings 2% on cost.

Required:

Prepare S. Eurat’s income statement for the year ended 30 June 2013 and statement of financial position as at 30 June 2013.

Transcribed Image Text:

S. Eurat Trial Balance as at 30 June 2013 Debit Credit Cash overdrawn at bank 1,500 Long-term loan 3,550 Receipts 28,300 Diesel and oil 8,250 Taxi repairs and service 3,950 Radio hire 3,400 Road fund licences 2,300 Buildings at cost 68,000 Taxis at cost 34,500 Business rates 450 Electricity 1,300 Telephone 1,250 Trade receivables 100 Trade payables for motor repairs 1,800 Insurance on buildings 1,300 General expenses 850 Drawings 9,600 Bank interest 150 Equity 103,250 Wages 3,000 138,400 138,400