Justin is a sole trader who has been in business for many years. He manufactures retail refrigeration equipment. The following trial balance has been extracted from his accounting records for the year ended 31 December 20X3:

Justin also provides the following information:
e The loan is repayable in five years’ time.
® The closing inventory was valued at £28,700 on 31 December 20X3.
You are required to prepare:

(a) anincome statement for Justin for the year ended 31 December 20X3

(b) astatement of financial position for Justin as at 31 December 20X3.

Transcribed Image Text:

Factory Revenue 148,000 293,350 Motor vans 14,870 Purchases 186,050 Inventory (01.01.X3) 24,600 Accounts receivable 29,480 Accounts payable 22,300 Rent and rates 9,470 Light and heat 2,860 Wages and salaries 30,400 Equipment 16,310 Bank overdraft 5,400 Capital (01.01.x3) 35,810 Motor expenses 4,950 Professional fees 1,250 Drawings 36,000 Loan 150,000 Bank charges 1,110 Insurance 230 Sundry expenses 1,280 506,860 506,860