The following trial balance was extracted from the books of a sole trader, as at 31 December 2006:

At the end of December the trader was able to produce the following additional information:
a Stock on 31 December 2006 is £9,687.
b Lighting and heating of £60 accrued on 31 December 2006.
c Rates of £67 paid in advance on 31 December 2006.

d The motor vans account appeared in the books as follows:

Depreciation on the new van is at the rate of 20 percent per annum. Ignore depreciation of furniture and fittings and:equipment.
Required 1 Prepare the profit and loss account for the year ended 31 December 2006.
2 Prepare the balance sheet as at 31 December.

Transcribed Image Text:

Trade creditors 7,555 Sales 72,500 Furniture and fittings 1,000 Motor vans 1,610 Stock 5,100 Discounts received 1,367 Trade debtors 4,980 General expenses Purchases Motor expenses Equipment 1,888 52,587 1,100 4,510 Rent and rates 421 Discounts allowed Wages and salaries 875 9,800 Bank 8,451 Capital account 11,400 Lighting and heating 500 92,822 92,822