Timothy's trial balance at 30 September 1999 is as follows:

Further information:
. The balance on the vans account comprises £29,600 brought forward from the previous year, plus £16,000 relating to the purchase of a new van on 1 January 1999. The new van cost £21,000, less a part-exchange allowance of £5,000 in respect of a van which had been bought for £13,200 on 1 August 1995.
. Motor vans are depreciated at 20% per annum on the straight-line basis.
All of the vans owned by Timothy on 1 October 1998 were less than four years old on that date.
. The cost of Timothy's closing stock on 30 September 1999 was £45,760.
. Rent of business premises costs £1,300 per month and is paid quarterly in advance on 1 March, 1 June, 1 September and 1 December each year. An insurance premium of £2,400 covering the year to 31 December 1999 was paid on 2 January 1999.
. Accrued heating and lighting expenses are estimated to be £1,600.
. Repairs and renewals include £2,300 for some building work carried out on Timothy's own home.
. Sundry expenses include telephone charges. An £820 telephone bill was received on 7 October 1999, consisting of £270 line rental for the three months to 31 December 1999 and £550 for calls made during the three months to 30 September 1999.
. It has been decided to write off bad debts of £2,390 (in addition to those already written off during the year) and to set the provision for doubtful debts at 4% of the remaining debtors.

. During the year to 30 September 1999, Timothy took stock from the business for his private use. This stock cost £750 and had a selling price of £1,150. No entries were made in the books when Timothy took this stock.
Required:

(a) Write up ledger accounts for motor vans, provision for depreciation of vans, disposal of vans, bad debts and provision for doubtful debts (no other ledger accounts are required).

(b) Prepare Timothy's trading and profit and loss account for the year to 30 September 1999 and a balance sheet as at that date.

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3 Capital as at 1 October 1998 89,840 Vans at cost 45,600 Provision for dep'n of vans at 1 October 1998 15,750 Trade debtors and creditors 57,540 62,650 Bank overdraft 9,540 Stock as at 1 October 1998 35,780 Purchases and sales 295,320 479,740 Returns inwards and outwards 14,650 12,480 Carriage inwards 3,510 Carriage outwards 24,540 Rent, rates and insurances 23,750 Heating and lighting 11,830 Wages and salaries 95,600 Repairs and renewals 3,570 Sundry expenses 7,690 Discounts allowed and received 14,590 1,420 Bad debts written off 7,650 Provision for doubtful debts at 1 October 1998 2,320 Drawings 32,120 673,740 673,740