Vincent Gogh, a shopkeeper, has the following trial balance.

You also have the following additional information.
1. Closing stock as at 31 December 2005 is £9,000.
2. V. Gogh owes £350 for electricity.
3. £200 of the rent is paid in advance.
Required: Prepare V. Gogh’s trading and profit and loss account for the year ended 31 December 2005 and a balance sheet as at 31 December 2005.

Transcribed Image Text:

V. Gogh Trial Balance as at 31 December 2005 Debit Sales Credit 40,000 Sales returns 500 Purchases 25,000 Purchases returns 450 Opening stock 5,500 Debtors 3,500 Creditors 1,500 Cash at bank 1,300 Long-term loan 3,700 Motor car 8,500 Shop 9,000