The trial balance extracted from the books of Mary, a sole trader, as at 31 December 20X9 was as follows:

Additional information
1. Inventory on hand on 31 December 20X9 is £94,280.
2. Rates paid in advance at 31 December 20X9 are £600.
3. General expenses unpaid at 31 December 20X9 are £1,660.
4. Allowance for irrecoverable debts is to be adjusted to £2,410.
5. A motor van purchased on 1 January of this year at a cost of £8,000 was traded in for £3,500 on 31 December 20X9 and a new van purchased at a cost of £10,000 on the same day. The amount due on the new van was payable on 1 January 20Y0. No entries had been made in the books in respect of this transaction when the trial balance at 31 December 20X9 was extracted.
6. Depreciation is to be charged on furniture and equipment at the rate of 5 per cent per annum on
cost and at the rate of 25 per cent per annum (reducing balance method) on motor vehicles.

Required
Prepare Mary’s statement of performance for the year ended 31 December 20X9 and statement of financial position as at 31 December 20X9.

Transcribed Image Text:

Capital Furniture and equipment (cost £21,000) Motor vans (cost £17,000) Purchases Sales revenue Rent and rates Salaries Irrecoverable debts General expenses Bank balance Allowance for irrecoverable debts Inventory at 1 January 20X9 Trade receivables Trade payables Drawings Debit 3 16,400 11,200 362,910 8,000 39,690 2,810 10,620 3,080 87,260 42,890 17,880 602,740 Credit £ 112,190 456,220 2,690 31,640 602,740