Lee is a sole trader who runs Window Advertising. He extracted the following trial balance from his accounting records for the year ended 30 April 20X4:

On 30 April 20X4 Lee valued his inventory at £4,140. The business loan is repayable in ten years’ time.
You are required to prepare:

(a) an income statement for Lee for the year ended 30 April 20X4

(b) a statement of financial position for Lee as at 30 April 20X4.

Transcribed Image Text:

Revenue 78,750 Purchases Motor vehicles Property 38,280 7,900 82,800 Motor expenses 1,110 Bank balance 10,420 Opening inventory 3,540 Office furniture 1,570 Business rates 6,490 Business loan 60,000 Light and heat 1,480 Stationery 430 Training 100 Wages 10,380 Accounts payable 9,480 Opening capital 31,270 Drawings 15,000 179,500 179,500