You are required to compute the profit for the year ended 30 June 20X9 and prepare a statement of financial position at that date. Show separately the cost of non-current assets and the aggregate depreciation in the statement of financial position.

2. Assets and liabilities, other than balance at bank:

3. All receipts are banked and all payments are made from the business bank account.
4. A trade debt of £300 owing by Peter Blunt and included in the trade receivables at 31 August 20X9 (see point 2 above) is to be written off as an irrecoverable debt.
5. It is Jane Grimes’ policy to provide depreciation at the rate of 20 per cent on the cost of motor vans held at the end of each financial year; no depreciation is provided in the year of sale or disposal of a motor van.
6. Discounts received during the year ended 31 August 20X9 from credit suppliers amounted to £1,000.

Required
a. Prepare Jane Grimes’ statement of profit or loss for the year ended 31 August 20X9.
b. Prepare Jane Grimes’ statement of financial position as at 31 August 20X9.

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1 Sep 20X8 balance brought forward Receipts from credit customers Sale of private yacht Sale of motor van (A123 BWA) Bank account £ 1,970 Payments to credit suppliers 96,000 Purchase of motor van (E471 KBR) Rent and rates 20,000 2,100 120,070 Wages Motor vehicle expenses Postage and stationery Drawings Repairs and renewals Insurances 31 Aug 20X9 balance carried forward £ 72,000 13,000 2,600 15,100 3,350 1,360 9,200 650 800 2,010 120,070