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i want the answer please! The trial balance below has been extracted from the books of R Illingworth at 31 December 2011: Dr (E) Cr
i want the answer please!
The trial balance below has been extracted from the books of R Illingworth at 31" December 2011: Dr (E) Cr (E) Capital (19 Jan 2011) 55,900 Sales 352,650 Purchases 208 100 Returns in 550 Returns out 200 Carriage in 750 Wages 39,000 Discount allowed 1,600 Discount received 2,380 Insurance 2,090 Rental 22 500 Administration expenses 7.250 Utility expenses 6,000 Vehicles 28 500 Provision for depreciation: vehicles 9,000 Fixtures and fittings 11,000 Provision for depreciation: f&f 3,300 Debtors 34,600 Creditors 14,800 Provision for doubtful debts 1.250 Stock (19 Jan 2011) 31,640 12% Loan (Lords Bank) 20,000 Interest on loan 1,200 Drawings 26,000 Cash 1,400 Bank 37/300 459,480 459,480 Notes to the accounts: 1) Stock at 31 December valued at 36,720 2) The insurance premium has been paid up to 31" March 2012 3) Rental has been paid to 314 October 2011 4) Wages paid on December 30" 2011 (included in trial balance) are up to 31* January 2012 5) Fixtures and fittings are depreciated at 10% straight line 6) Vehicles are depreciated at 20% straight line 7) Provision for doubtful debts is to be 5% of year end debtors 8) Illingworth disposed of a van during 2011. The van originally cost 8,000 in 2008 and its sale price was 2,000 (full year's depreciation in year of acquisition and nothing in year of disposal) Required: (a) Draw up the trading and profit and loss account for Illingworth for year ending 31" December 2011 and a balance sheet as at that date. [20] Step by Step Solution
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