Answer to Question #169313 in Accounting for shelly

Question

J. Wright, a sole trader, extracted the following trial balance from his books at the close

of business on 31 March 2016:-

Purchases and sales 61,420 127,245

Inventory 1 April 2015 7,940

Capital 1 April 2015 25,200

Bank overdraft 2,490

Cash 140

Discounts 2,480 62

Returns inwards 3,486

Returns outwards 1,356

Carriage outwards 3,210

Rent and insurance 8,870

Allowance for doubtful debts 630

Fixtures and fittings 1,900

Van 5,600

Accounts receivable and accounts payable 12,418 11,400

Drawings 21,400

Wages and salaries 39,200

General office expenses 319

168,383 168,383

Notes:

(a) Inventory 31 March 2016 £6,805.

(b) Wages and salaries accrued at 31 March 2016 £3,500; Office expenses owing £16.

(c) Rent prepaid 31 March 2016 £600.

{d) Increase the allowance for doubtful debts by £110 to £740.

(e) Provide for depreciation as follows: Fixtures and fittings £190; Van £1,400.

Prepare the statement of profit or loss for the year ending 31 March 2016 together with a statement

of financial position as at that date.

Answer 1

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