Account

Debit

Credit

Capital

117,769

Bank Loan

100,000

Drawings

42,000

Fixtures and fittings at cost

28,000

Fixtures and fittings - accumulated depreciation

12,000

Cars at cost

38,000

Cars - accumulated depreciation

18,000

Building at cost

150,000

Trade payables

18,465

Purchases

195,871

Wages

52,647

Rates

8,147

Insurance

4,652

Light and heat

8,113

Car running costs

2,651

Opening inventory

15,962

Stationery and postage

1,841

Telephone

6,425

Bank charges

657

Entertaining

3,224

Advertising

5,862

Repairs and maintenance

3,984

Miscellaneous expenses

326

Trade receivables

41,115

Cash at bank

13,258

Petty cash

500

Rent received

19,000

Sales

341,115

Bad debts

3,114

626,349

626,349

In addition you are provided with the following information :-

1. Rent received relating to the quarter ended 28 February 2021

3,000

2. Further bad debts to be written off

1,115

3. Provision for Doubtful Debts to be established

2

%

Continued

4. Accruals:

Telephone

2,055

Electricity

2,814

5. Included in the insurance costs is a premium for third party cover which runs from

June 1 2020 to May 31 2021 the annual charge for which is:-

1,200

6. The interest on the bank loan has not been charged and the rate

for the year is :

9

%

7. Depreciation is to be charged as follows :

Cars

Straight line

25

%

Fixtures and fittings

Reducing balance

20

%

8. Closing inventory amounts to :

21,147

Using all of the above information you are required to prepare in good order, an income

statement and a balance sheet for the year to 30 November 2020.