Trial balance of the White Hart Hotel as at 31 October 1990

£

Capital Stocks (I Nov. 1989)

Loan from Busifinance Leasehold premises Furniture and equipment Debtors Creditors 2,250 97,500 22,500 900

£

85,800 15,000 750 Advertising and insurance Salaries and wages Rates Discount received Discount allowed Purchases Rent received Bank Heat and light Sundry expenses Cash Sales Drawings £
1,905 16,500 1,350 300 37,500 1,500 825 675 150 3,600 187,455 113 £
105 1,800 84,000 187,455 Taking into account the following matters, prepare a trading and profit and loss account for the year ended 31 October 1990 and a balance sheet at that date.

(a) Stocks at 31 October 1990 were valued at £3,000.

(b) Salaries outstanding amounted to £200 on 31 October 1990.

(c) Insurance paid in advance on 31 October 1990 was £30.

(d) The loan from Busifinance was made on 31 July at an agreed interest of 12% per annum. This had not been paid.

(e) The rent received of £1,800 included £200 in advance for November 1990.