Witton commenced business on 1 July 2009. The following trial balance was extracted from his books of account as at 30 June 2010:

Additional information:
1 Stock at 30 June 2010: £2000.
2 The motor car is to be depreciated at a rate of 20 per cent per annum on cost; it was purchased on 1 July 2009.

Required:
Prepare Witton's trading and profit and loss account for the year to 30 June 2010 and a balance sheet as at thatdate.

Transcribed Image Text:

Dr Cr Capital Cash Drawings Creditors Debtors Motor car at cost Office expenses Purchases Sales 3 000 500 4 000 1 500 3 000 5 000 8 000 14000 30 000 34500 34 500