Simon Eurat, who runs a taxi business, has the following trial balance.

You have the following additional information.
1. 10 % of the debtors are considered bad.
2. £800 of the insurance is prepaid.
3. There is £250 owing for electricity and £300 owing for telephone.
4. Depreciation on taxis is to be 25 % on cost and on buildings 2 % on cost.
Required: Prepare S. Eurat’s trading and profit loss account for the year ended 30 June 2005 and balance sheet as at 30 June 2005.

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S. Eurat Trial Balance as at 30 June 2005 Debit Credit Cash overdrawn at bank 1,500 Long-term loan 3,550 Receipts 28,300 Diesel and oil 8,250 Taxi repairs and service 3,950 Radio hire 3,400 Road fund licences 2,300 Buildings at cost 68,000 Taxis at cost 34,500 Business rates 450 Electricity 1,300 Telephone 1,250 Debtors 100 Creditors for motor repairs 1,800 Insurance on buildings 1,300