From the following trial balance and additional information construct an income statement for the year ended 31 July 2017 and a balance sheet as at that date.
K Atkinson Trial balance as at 31 July 2017
|
Dr £ |
Cr £ |
|
|
Sales |
168,000 |
|
|
Purchases |
75,000 |
|
|
Opening inventory |
11,000 |
|
|
Property |
200,000 |
|
|
Machinery |
28,000 |
|
|
Debtors |
7850 |
|
|
Creditors |
5,670 |
|
|
General expenses |
5,400 |
|
|
Maintenance expenses |
8,900 |
|
|
Wages |
35,000 |
|
|
Office expenses |
5,470 |
|
|
Provision for depreciation on property |
5,500 |
|
|
Provision for depreciation on machinery |
11,000 |
|
|
Provision for doubtful debts |
250 |
|
|
Capital |
148,000 |
|
|
Drawings |
17,500 |
|
|
Bank |
4,300 |
|
|
Loan |
60,000 |
|
|
398,420 |
398,420 |
Additional information:
1Inventory as at 31 July 2017 is valued at £19,800.
2Depreciation is to be provided on cost at the following rates:
aProperty2%
bMachinery20%.
3Wages still owing as at 31 July 2017 were £2,400.
4Maintenance prepaid as at 31 July 2017 was £450.
5The provision for doubtful debts is to be maintained at 4% of debtors.