The following trial balance was extracted from the books of A Scholes at the close of business on 28 February 19X7.

Notes:

(a) Stock 28 February 19X7 £3,510.

(b) Wages and salaries accrued at 28 February 19X7 £90.

(c) Rent prepaid at 28 February 19X7 £140.

(d) Van running costs owing at 28 February 19X7 £60.

(e) Increase the provision for bad and doubtful debts by £60.
( Provide for depreciation as follows: Office furniture £180; Delivery van £480.
Required:
Draw up the trading and profit and loss account for the year ending 28 February 19X7 together with a balance sheet as on 28 February 19X7, using vertical formats throughout.

Transcribed Image Text:

Dr Cr Purchases and sales Cash at bank 11,280 19,740 1,140 Cash in hand Capital account 1 March 19X6 Drawings 210 9,900 2,850 Office furniture Rent Wages and salaries 1,440 1,020 2,580 690 Discounts 360 Debtors and creditors 4,920 2,490 Stock 1 March 19X6 2,970 Provision for bad and doubtful debts 1 March 19X6 270 Delivery van 2,400 450 Van running costs Bad debts written off 810 32,760 32,760