Question 1

The following are the unadjusted ledger balances of Tricia Wood Ltd for the year ended 31 Mar 2018:

Ordinary Share Capital Sales Trade payables Purchases return/Returns Outwards Purchases

Sales returns/Returns Inwards Carriage inwards Rental expense Insurance expense Advertising

Salaries

Cash at Bank

Inventory at 1st April 2017

Trade Receivables

Furniture and fittings at cost

Equipment at cost

Accumulated Depreciation, at 01st April 2017: Furniture and fitting

CR ($)

200,000 498,000 21,000 12,000

DR ($)

292,700 7,000 4,000 51,300 40,000 28,000 85,000 26,000 16,000 24,000 190,000 50,000

814,000 814,000

83,000

Additional information needed for year-end adjustments, is as follows:

Prepaid Insurance for April 2018	$1,800
Inventory as at 31 March 2018	$75,300
Irrecoverable debts to be written off	$900
Rental owing as at 31 March 2018	$2,000
Depreciation for the year Furniture and	$5,000
Fittings Depreciation for the year Equipment	20% on cost

Required:

a) Prepare an Income Statement for the year ended 31March2018

b) Prepare a Statement of Financial Position as at that date.