Examine the following trial balance of M. Trigg, retailer, taken from his books at 30 June 1990.

Fixed assets (at cost)

Provision for depn on fixed assets Stock Debtors Provision for bad debts Bank Creditors Cash Capital Sales Purchases Wages Drawings General expenses

£ dr 40,000 8,000 1,500 200 60,000 4,000 1,000 6,000 120,700

£ cr 4,000 100 100 500 26,000 90,000 120,700 Prepare a trading and profit and loss account for the year ended 30 June 1990 and a balance sheet at that date, taking into consideration the following:

(a) Stock at 30 June 1990, £10,000.

(b) Fixed assets are to be depreciated by 10% on cost.

(c) Bad debts of £80 are to be written off and the provision adjusted to 5% of outstanding debtors.

(d) General expenses include a prepayment of £200 rent for July 1990.