9.2 Second and Minute started trading as retail grocers in partnership on 1 January 20X4, but did not keep a set of double-entry books. The firm’s bank account, for 20X4, prepared from the record of cheques issued and cash paid into the bank, was

£ £

Capital introduced: Purchases 160,000 Second 20,000 Wages 17,000 Minute 20,000 Rent and rates 3,500 Sales receipts banked 200,000 Light and Heat 1,260 Delivery van 19,000 Drawings: Second 18,000 Minute 16,000 Balance c/d 5,240 240,000 240,000 Notes 1 The following payments were made directly from cash sales receipts:

£

Petrol for van 2,000 Maintenance 1,000 Advertising 900 Purchases 2,500 6,400 2 The van, purchased on 1 January 20X4, is expected to have a life of five years, at the end of which its scrap value will be £3,000.
3 The partners agree that separate capital and current accounts are to be kept and all profits and losses are to be shared equally.
4 At 31 December 20X4:
£
Debtors 5,460 Trade creditors 3,800 Prepaid rent 100 Light and heat accrued 140 Stock 9,200 5 During 20X4 both Second and Minute took groceries for personal use at cost price as follows:
£
Second 1,000 Minute 1,260 2,260 Prepare the trading and profit and loss account for the year to 31 December 20X4 and the balance sheet at that date.