ACCOUNTS DEBIT CREDIT Cash in hand 3,400 Bank Balance 18,660 Stock 1st Jan 2016 46,000 Purchase 150,200 purchase returns 600 Freehold premises 38,600 Incidental trade expenses 840 Insurance 1,640 Audit fees 280 Commission received 3,300 Bank overdraft 4,000 Interest on Bank Overdraft 200 Trade Debtors 36,000 Trade Creditors 34,670 Wages 25,000 Salaries 14,000 Capital 114,000 Drawings 5,000 Income tax 1,600 Investments 4,000 Discount allowed 6,300 Discount received 4600 Sales return 550 sales 201350 Bills receivable 3,200 Office furniture 3,050 Rent 4,000 362,520 362,520 Adjustments: a) Stock at 31 December 2017 is 52,000 b) Write off 5% depreciation on freehold premises and 10% on office furniture c) Unpaid wages are 4,200 d) Insurance to the extent of 200 relates to the year 2017 2018 e) Charge interest on capital @ 5% and 300 on drawings. f) Rent is payable at the rate of 400 per month. Required: 1) Prepare Trading & Profit and Loss account for the year ended 31 December 2017 2) Prepare Balance Sheet as on 31 December 2017. It should be in this format

Trading and P & L account of Lexounde Limited as on 31 December 2017 By Sales Less:Returns 0.00 0.00 By Closing stock fo Opening stock To Purchases Less : Returns Incidental Trade Expenses Wages Add:Unpaid Wages 0.00 0.00 0.00 0.00 0.00 By Gross profit b/d BY Commission Received By Discount Received By Interest on drawings By Net Loss 0.00 0.00 To Audit Fees To Interest on OverDraft To Salary To Discount allowed To Rent Add: Outstanding Rent To Insurance 3 Less: Prepaid Insurance To Interest on capital 0 To Depreciation Expenses 1 FreeholdPremises 2 Office furniture 23 To Income Tax 0.00 24. 15 0.00 0.00 EU.UU Balance sheet of Lexounde Limited as on 31 December 2017 Assets Cash In hand Liabilities Capital Less: Drawings Less:Net Loss 0.00 0.00 0.00 Bank Balance Stock Prepaid Insurance Trade Debtors Interest on drawings Bills Receivable Investments Freehold Premises Less:Depreciation 1 Furniture Less Depreciation Bank Overdraft Outstanding Wages Outstanding Rent Interest on Capital Trade Creditors 0.00 0.00 OUW 0.00 0.00