On 31 May 20x8, the balance sheet of Daponte Trading Ltd appears as follows:

During the month of June 20x8, Daponte Trading Ltd had the following summary of transactions: a Received $5,000 from debtors. b Sold $7,500 worth of stock on credit. This stock had cost $3,000. c Sold stock costing $5,000 for $12,800 cash. d Purchased $15,000 stock on credit. e Paid creditors $14,000. f Bought supplies for $1,500 cash. g Paid wages for the month of $3,500. h Paid rent of $600 for the month. i Paid annual insurance policy in advance, $840. The plant is expected to last for five years with no scrap value. Depreciation adjustment required. k At end of month had $4,300 of supplies left on hand. | Adjusted for prepaid insurance used. Required From the above information, prepare a profit and loss account and a balance sheet at the end of the month.

Transcribed Image Text:

Daponte Trading Ltd Balance sheet as at 31 May 20x8 Current assets Cash Debtors Supplies Stock 10,000 12,000 6,000 25,000 53,000 Fixed assets Plant 30,000 Less Accumulated depreciation 10,000 20,000 Current liabilities Creditors 18,000 55,000 Owner's equity Capital 55,000