The following information is provided for Cindy Ash:

Additional information at 30 November 20*8

■ Stock was valued at £10,177.
■ Motor expenses owing amounted to £130.
■ Light and heat expenses had been prepaid £102.
■ Cindy had withdrawn goods from the business for her private use £1,200.
■ Provision for doubtful debts is to be maintained at 10% of debtors outstanding at the yearend.
■ Depreciation is to be provided for on fixed assets at the following rates:
– Office equipment at 5% per annum using the straight line method
– Motor van at 20% per annum using the reducing balance method.

Required

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

Transcribed Image Text:

Trial balance as at 30 November 20*8 Stock 1 December 20*7 Purchases Sales Returns inwards Returns outwards Carriage inwards Carriage outwards Discounts allowed Motor expenses Wages Rent Bad debts Bad debts recovered Provision for doubtful debts General expenses Telephone Light and heat expenses Office equipment at cost Motor van at cost Provision for depreciation Office equipment Motor van Trade debtors Bank Cash in hand Capital Drawings Trade creditors Dr £ 11,461 72,384 817 278 241 159 4,817 26,481 4,500 211 7,919 812 1,487 48,700 16,000 6,780 4,831 199 Cr £ 156,382 388 179 450 17,045 3,200 51,053 28,100 7,480 236,177 236,177